Factory Orders In May Posted Decline of 2.5% --- Report Further Confirms Slowing U.S. Economy; Many Sectors Show Sag
WASHINGTON -- The 2.5% decline in factory orders in May offers further confirmation that the U.S. economy has slowed.</br></br>The Commerce Department said factories of many kinds, from oil refineries to computer manufacturers, reported falling orders in May.</br></br>As earlier government reports indicated, the declines were particularly pronounced among aircraft makers, who have been flooded with orders in earlier months. But excluding the volatile transportation goods sector, orders still fell 1.5%.</br></br>In all, factories booked $233.95 billion in new orders during the month, down from $239.91 billion in April. The May decline offset most of the 3% April increase.</br></br>"It's a sign that the economy is slowing more sharply than expected and underlines the need for the {Federal Reserve} to loosen monetary policy now," said Jerry Jasinowski, economist for the National Association of Manufacturers. The Fed's policy-making Open Market Committee meets Wednesday and Thursday to set monetary policy for the following six weeks.