Orders to U.S. factories fell for a record fifth consecutive month in December, ending the worst year for U.S. manufacturers since 2002, the government reported. The Commerce Department said that factory orders fell by 3.9 percent in December, a significantly bigger decline than the 3 percent expected by economists. The weakness was widespread, with a range of industries from autos to heavy machinery and computers all reporting big declines in demand. For all of last year, factory orders rose 0.4 percent, the weakest performance since factory orders fell by 2.8 percent in 2002. In December, demand for durable goods—expensive manufactured items expected to last at least three years—fell 3 percent, worse than the 2.6 percent decline that the government initially reported last week. Demand for non-durable goods—products such as food, petroleum, and paper—fell by 4.8 percent in December following an 8.7 percent plunge in November. Some of the month's decline reflects the big drop in energy prices that has occurred in recent months.
