US factory orders fall for second straight month

Orders to US factories fell for a second consecutive month in April, official data showed on Monday providing new evidence of a manufacturing slowdown.

The Commerce Department reported new factory orders dropped 0.6 percent from March, instead of an 0.1 percent rise expected by most analysts.

The March decline in orders was revised sharply, to 2.1 percent from an initial 1.5 percent estimate.

The latest numbers confirmed a weakening in the manufacturing sector, which had been a key source of activity helping to drive the economy's recovery from the deep 2008-2009 recession.

The slowdown in industrial production was a key factor in economic growth decelerating to a 1.9 percent annual pace in the first quarter from 3.0 percent in the fourth quarter.

Excluding transportation equipment, which can be volatile month-on-month, factory orders dropped 1.1 percent in April, the Commerce Department said.

On Friday, the ISM purchasing managers index May showed manufacturing growth eased again in May on falling prices and slower orders.

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