US factory order experiencing decline for the second consecutive month.

Following concerns over recession US factory orders have fallen from 0.8 percent following the 2.5 percent decline experienced in January as companies reduce their investment plans due to the current economic climate.

Big business are making cuts following the deepest property slumps, as well as the highest energy prices on record which have constrained consumer spending following the credit squeeze.

David Resler, chief economist at Nomura Securities International has said that: “we’re seeing an economy that is sluggish, that’s being held back significantly by the housing contraction, the credit crunch and high energy costs” causing the cut backs in investment.

The cuts backs have also had a knock on effect through the labour market as indicated by today’s from ADP Employer Services survey showing that companies are likely to cut 45,000 workers this month.

Some sectors of the economy have faired better than others, as factory booking for transportation equipment have experienced a marked rice as the demand for commercial aircraft have stabilized the industry following a slowdown in car sales.

The value of the dollar has benefited Boeing Co. the world’s second-biggest airplane maker, have received 125 aircraft orders last month, up from 65.

In general industrial production has fallen by 0.5 percent last month, which is the biggest decline in almost two years although it is hoped that the gains in exports will help to prevent the factory slump getting deeper as companies have reduced their stockpiles to $18.3 billion, the lowest since 2001.

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