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To: Jill who wrote (47680)	11/3/1999 3:56:00 PM
From: T L Comiskey	Read Replies (1) \| Respond to of 152472

Sept. Factory Orders in Sharp Decline By Jeannine Aversa The Associated Press W A S H I N G T O N, Nov. 3 ? Orders to American factories for manufactured goods fell sharply in September as demand weakened for airplanes, cars and industrial equipment. The Commerce Department reported today that factory orders declined a bigger-than-expected 0.9 percent in September, following a 1.3 percent rise the month before. Many analysts had forecast factory orders would fall by only 0.7 percent in September. September?s performance marks the first decline since a 1.4 decrease in April, the government said. Indicators Slip a Tad In a separate report, the Conference Board said today that a key gauge of future economic activity fell slightly in September, but the U.S. economy is expected to remain on track toward the longest expansion in American history. The board?s Index of Leading Economic Indicators declined 0.1 percent in September to 107.9 after showing no change at 108.0 the month before, according to revised figures released by the private business-financed study group. The index had increased in the three preceding months. Analysts had predicted that the index would be unchanged in September. Federal Reserve policy-makers meet next on Nov. 16 to decide whether to raise interest rates for a third time this year to slow the economy and prevent an outbreak of inflation. To Raise Rates, or Not Many economists believe that the odds are slightly in favor of a rate increase in November, but said it?s a close call. The transportation sector reported the biggest decrease, falling 4.2 percent in September, the first decline since April. The drop was led by weaker demand for airplanes and aircraft parts and cars and automobile parts. In August, transportation orders rose a solid 3.7 percent. Excluding the volatile transportation category, factory orders would have fallen 0.4 percent in September, the largest drop since a 1.9 percent decline in October 1998. Orders for industrial machinery and equipment, including computers, down four of the last five months, also fell in September, by 0.7 percent. But that was a better showing than the 2.8 percent decline reported in August. Hard Times Continue for Steel Orders for primary metals, which includes steel, also was down for the second month in a row, falling 0.7 percent in September. They were down 0.5 percent the month before. There was a bright spot in today?s report. Orders for electronic and other electrical equipment, the category that includes household appliances and communications equipment, up for four months in a row, rose 1.3 percent in September. That followed a 1.7 percent gain in August. Meanwhile, orders for durable goods ? items expected to last at least three years ? fell 1.3 percent in September, while orders for nondurable goods, such as fuel, declined by 0.4 percent. Both categories posted gains in August. The U.S. manufacturing sector continues to recover from the global economic crisis, which dampened overseas demand for U.S. goods. At the same time, manufacturers faced competition from a flood of cheaper imports. On Monday, the National Association of Purchasing Management reported that U.S. manufacturing grew at a slower rate in October, while prices of raw materials soared to a four-year high. The report suggests that the Federal Reserve?s two interest-rate increases last summer are restraining economic growth, analysts said.