Manufacturing Figures Indicate a Slowdown

In what could be a key indicator of domestic demand for both finished and scrap metals, orders for durable goods dropped in October by the largest amount in more than six years, according to Commerce Department figures.

As reported by the Associated Press, Commerce Department data indicate that demand for durable goods fell by 8.3 percent in October. A drop in demand for commercial airplanes has been singled out as one key cause.

But overall, it marked the third month out of the past four that orders have been either flat or declining. Orders for are showing some of the most worrisome declines since the summer of 2000, when the economy began sputtering at the end of the dot-com boom.

One possibility, though, is that the 44.5 percent drop in aircraft orders is dragging down what is otherwise healthy demand in consumer segments such as that for automobiles, which actually gained 1.4 percent in October.

But other industries showing weakness in demand include computers, communication equipment and primary metals such as steel. Even outside of the transportation segment, overall orders were down 1.7 percent, the biggest decline in 15 months, according to AP.