Summary Box: Factory orders drop in June

AP News
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Posted: Aug 03, 2011 12:33 PM
Summary Box: Factory orders drop in June

ORDERS DOWN: U.S. factories orders fell 0.8 percent, the second decline in three months. Businesses cut demand for airplanes, autos and heavy machinery.

CAPITAL GOODS: A key measure of business investment plans increased 0.4 percent, one positive sign amid mostly gloomy reports on the economy.

OUTLOOK: Analysts expect manufacturing and the overall economy to pick up in the second half of the year once energy prices stabilize and Japanese factories resume normal production. But that is unlikely if consumers remain worried about the economy slipping back into another recession.

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