Factory orders decline again, non-manufacturing sector slows

From the WSJ:

U.S. factory orders fell a second straight month during October, according to government data that suggested manufacturers were having difficulty gaining ground amid a soft economy.

Separately, the U.S. nonmanufacturing sector saw a slower rate of expansion in November, according to data released Monday by the Institute for Supply Management.

Factory orders decreased by 0.4% from the prior month to $450.03 billion, the Commerce Department said Monday. Economists surveyed by Dow Jones Newswires had forecast a 0.5% decline. Orders in September dipped 0.1%, revised down from a previously estimated gain of 0.3%.

Capital investment on equipment by U.S. businesses in October also fell. Nondefense capital goods orders excluding aircraft dropped by 0.8%. The category of orders serves as an indicator of the confidence businesses have in the economy.

Economic weakness is restraining manufacturers. The economy's recovery slowed sharply early this year. Growth sped up over the summer, yet was modest. . . .

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