WASHINGTON (AP) – Orders to U.S. factories slipped for a third straight month in October and would have fallen even more except for a big jump in defense orders.
A key category that tracks business investment spending fell for a second straight month.
The Commerce Department says factory orders fell 0.7 percent in October following declines of 0.5 percent in September and 10 percent in August. Demand for machinery, computers and primary metals were all down. An important category that is viewed as a proxy for business investment plans fell 1.6 percent following a 1.1 percent decline in September.
The overall decline would have been larger except for a surge in military orders, which jumped 21.2 percent in October, reflecting strong demand for military aircraft. Economists believe the recent weakness will be temporary.