Factory orders fall in Dec due to drop in transport bookings

[WASHINGTON] New orders for US factory goods fell in December, but rose for a third straight month when the volatile transportation sector was excluded, which could ease concerns of an abrupt slowdown in manufacturing activity.

The Commerce Department said yesterday that new orders for manufactured goods dropped 1.5 per cent, the largest fall since July, weighed down by a plunge in bookings for transportation equipment.

November's orders were revised to show a 1.5 per cent increase instead of the 1.8 per cent gain previously reported.