US factory orders still falling

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Orders for long-lasting manufactured goods from US factories fell in December for the fifth month in a row, official figures have shown.

New orders for durable goods fell 2.6%, a bigger drop than had been expected, as the recession continued to bite.

An increase in orders for transportation goods prevented an even bigger month-on-month fall.

Factory orders for the full year fell by 5.7%, while the drop in November was revised down to 3.7%.

Orders for motor vehicles and parts fell by 5.2%, highlighting the perilous state of the US car industry.

There were also big drops in orders for primary metals, machinery and computers, the figures from the US Commerce Department showed.

Gloomy picture

With the year-long recession in the US going from bad to worse, consumers continue to cut back spending on big, manufactured goods.

Earlier this month, figures from the US Institute for Supply Management showed that US manufacturing activity fell to a 28-year low in December.

And individual companies are being hit hard by individuals and companies tightening their belts.

Carmaker Ford announced on Thursday a loss in 2008 of $14.6bn - its biggest full year loss in its history.

On Wednesday, aircraft giant Boeing said it would lay off 10,000 workers this year.