New factory goods orders drop most in over a yr. in Jan. 2012, biggest decline since Oct. 2010-Reuters

3/5/12, "January factory orders fall most in over a year," Reuters

"New orders for factory goods dropped in January by the most in over a year and businesses cut orders for new capital goods, suggesting one of the drivers of the economic recovery faltered at the start of the year.

The Commerce Department said on Monday orders for manufactured goods fell 1.0 percent, a less steep decline than the 1.5 percent loss expected by private forecasters in a Reuters poll. Still, it was the biggest decline since October 2010.

Many economists think the expiration of some tax breaks on capital spending at the end of 2011 led businesses to bring forward investments.

Indeed, December's gain was revised up to 1.4 percent from a previously reported 1.1 percent.

Orders for non-defense capital goods excluding aircraft - a closely watched category because it is taken as a sign of businesses' future spending plans - fell 3.9 percent in January.

Shipments for this category declined 3.0 percent."

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AP says drop was most in 3 years

2/28/12, "Stocks open mixed after steep decline in factory orders, still-falling home prices," AP, D. Wagner

"The government said Tuesday that orders for long-lasting manufactured goods fell last month by the most in three years. Businesses made fewer long-term investments. That kind of investment has helped drive the recovery.

An index of home prices fell in December for a fourth straight month in most major U.S. cities as sales remained slow."...

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