Factory Orders Fell in January
Orders to U.S. factories fell 3.8 percent in January to their lowest level in 14 months, fresh evidence that manufacturers continue to struggle during the economic slowdown.</br></br>But another report showed that growth in Americans' productivity - - or output per hour of labor -- while slower, was still solid in the fourth quarter despite the sharp economic slowdown.</br></br>The Commerce Department reported yesterday that the January decline in factory orders, which followed a 0.6 percent increase in December, was led by a sharp drop in demand for airplanes, cars and other transportation equipment. Excluding the volatile transportation category, orders fell 0.3 percent, the third decrease in the last four months.</br></br>Factory orders rose 5.3 percent, the largest increase in a year, in the category of industrial machinery orders, which include those for computers. That followed a 3.2 percent decline in December.</br></br>January's overall performance was slightly weaker than the 3.5 percent decrease many analysts were expecting. The decline pulled orders to a seasonally adjusted $366.5 billion, the lowest level since November 1999.