Factory orders fall more than expected

Factory orders fell 2.9% in December, more than the forecast for 2.8%.

This was the biggest drop in a year.

The manufacturers’ shipments, inventories and orders report also contained final data on durable goods orders in December, which were revised to 5% from 5.1%, and expected at 4.5%.

The manufacturing sector continues to be dampened by the effects of a strong dollar and weak international demand.

The oil crash, and reduced capital expenditure in the sector, is also hurting industry.

Capital orders for non-defence goods excluding aircraft fell 4.3% in December.

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