US factory goods demand falls unexpectedly
Demand for US factory goods fell unexpectedly in June, reflecting a drop in corporate investment and the biggest decreases in non-durable goods orders for over three years.
Factory orders fell 0.5 per cent, compared with analysts’ expectations of a 0.7 per cent rise, US commerce department figures showed yesterday. June’s fall followed a downwardly revised 0.5 per cent increase in May, after sharp declines the two previous months.
Economists fear a slowdown in momentum, given that manufacturing had been regarded as the mainstay of a US economic recovery. The sector accounts for about 12 per cent of the economy. – (Copyright The Financial Times Limited 2012)