November Factory Orders Fall More Than Expected

January 6, 2009 11:08 a.m. EST

Washington, DC (AHN) - Factory orders fell 4.6 percent in November, the Commerce Department said on Tuesday. That marks the fourth consecutive month of decline as demand for goods continues to soften.

The drop in November orders was much worse than the 2.5 percent decline economists had expected.

The Commerce Department said total orders fell $18.7 billion in November to $384.6 billion.

Weakness was largely attributed to falling demand for commercial aircrafts, as well as steel, autos, and defense communications equipment.

Although the November drop was large, it was not as severe as the previous month, when orders saw a 6 percent plunge.

The Commerce Department also said new orders for durable goods fell 1.5 percent in November to $185.7 billion.

Shipments of durable goods were off 3.1 percent to $194.9 billion. The November decline is the fourth straight for shipments as well.

Inventory levels for durable goods continued to climb, up 0.4 percent in November. Inventory levels are now up sixteen of the past seventeen months and sitting near all-time highs set back in 1992.