Factory Orders Fall Unexpectedly In August

[Purveyor]

Source: Associated Press

By MARTIN CRUTSINGER (AP) – 32 minutes ago

WASHINGTON — New orders to U.S. factories fell in August by the largest amount in five months, as American manufacturers struggle to emerge from the recession.

The Commerce Department said Friday that demand for manufactured goods dropped 0.8 percent, much worse than the 0.7 percent gain that economists had expected. The August decline reflected plunging demand for commercial aircraft, a category that surged in July.

Economists worry that factories will remain under pressure because of weak consumer spending as American households deal with continued layoffs and rising unemployment.

In a separate report, the Labor Department said unemployment rose to a 26-year high of 9.8 percent in September as employers cut a net total of 263,000 jobs, far more than had been expected.

While many economists believe that the country has emerged from the worst recession since the 1930s, they worry the rebound could falter once the impact of government stimulus efforts, such as the Cash for Clunkers car program, wanes.

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[hunter]

1. We'll stubbornly cling to the belief that every little upturn signals an end to this...

...all the way to the bottom.

The bottom is a long way down and the United States has no superpowers there. One morning we'll wake in a ditch as an ordinary Clark Kent with a terrible hangover and chronic health and money problems.