Factory orders down by 1.4%, largest since March last year
Factory orders down by 1.4%, largest since March last year

Fall in the factory orders came down to an unexpected levels. The figures went down at touched at a level which was even lower than what happened during March 2009.

As per the data collected by the U.S. Commerce Department, factory outlet was down by 1.4 per cent. Experts fear that this can be taken as an evidence that the recovery process in US is slowing down.

Bloomberg did a survey and that showed that the figure should have been close to 0.5 per cent after showing a gain of 1 per cent in April. In March, the figures were 1.7 per cent.

Interestingly, if the transportation component (including airplanes and cars) are excluded then the factory orders went down by 0.6 per cent in May as against a decline of 0.7 per cent.

In this, if the defense factor was excluded then the factory orders went down by 1.4 per cent in May after gaining 1.1 per cent and 1.7 per cent in April and March respectively.

This component of the economy is important since the past records show and help in estimating how busy the manufacturing sector is going to be in the future.

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