August Factory Orders in U.S. Fall More Than Forecast

[Purveyor]

Source: Bloomberg News

Oct. 4 (Bloomberg) -- Orders placed with U.S. factories fell in August by the most in seven months, raising concern the turmoil in credit markets eroded business confidence.

Bookings declined a greater-than-forecast 3.3 percent after a revised 3.4 percent gain in July that was smaller than previously estimated, the Commerce Department said today in Washington. Excluding transportation equipment such as cars and airplanes, demand declined 1.7 percent after a 1.7 percent gain.

The figures suggest business investment will slow in the second half of the year as a worsening housing recession hurts consumer spending. Economists project Federal Reserve policy makers will lower interest rates again to prevent economic growth from stalling.

``Business spending may be starting to buckle a bit,'' Michael Gregory, a senior economist at BMO Capital Markets in Toronto, said before the report. ``Spending will still be a source of growth, but it is slowing.''

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The number of workers filing first-time claims for unemployment benefits rose last week, a report from the Labor Department also showed. Applications increased by 16,000 to 317,000, higher than forecast, in the week that ended Sept. 29. The level is still near the average for the year, showing companies are holding on to their employees.

Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=aiYiyPJe0QG8&refer=us

[Deja Q]

1. Has anyone analyzed why or how growth and spending has slowed down?

And, for those studies, has every conceivable factor been included? (some details can be forgotten, hence a rational need to build teams to do this sort of work; it covers more possibilities.)

[aquart]

2. We still have factories?