Orders to U.S. factories fell for a record fourth straight month in November, and analysts said manufacturing will probably continue to suffer in coming months. The U.S. Commerce Department said Tuesday that orders declined by 4.6 percent in November, nearly double the 2.5 percent drop economists expected. Orders have been falling since August, including a 6 percent plunge in October, the biggest in eight years. The weakness in November was caused in part by a big drop in demand for commercial aircraft, though demand also fell for autos, primary metals such as steel, and defense communications equipment. Also Tuesday, the Institute for Supply Management reported that a closely watched gauge of activity in the services sector rose slightly in December but still remained at recessionary levels. The services sector index rose to 40.6 from 36.3 in November. Any reading below 50 signals contraction. The factory orders report showed that demand for durable goods, items expected to last three or more years, fell by 1.5 percent in November, even worse than the government's initial estimate two weeks ago that durable goods had fallen 1 percent. Demand for nondurable goods dropped by 7.4 percent in November, following a 3.8 percent decline in October. The declines for nondurable goods reflect falling demand and a big drop in prices, particularly for energy products.
