"We're in a period now where the economy is cooling"
- Robert Dye , chief economist at Comerica Inc.
U.S. factory orders unexpectedly declined for a second consecutive month in April, pointing to a deceleration in manufacturing. Bookings retreated 0.6 per cent, Commerce department data showed on Monday.
"We're in a period now where the economy is cooling," said Robert Dye , chief economist at Comerica Inc. in Dallas.
"Businesses are getting more defensive as they think about the uncertainty they face the rest of this year."
"While this suggests slightly softer business investment at the end of the first quarter and beginning of the second quarter, we would be careful about reading too much into the declines in April, as a sizeable drop in the first month of a quarter has become a regular pattern," said Peter Newland, analyst at Barclays.
"A more concerning development would be if core orders and shipments failed to rebound in May and June," he added.
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