Washington, Nov. 4 (Bloomberg) -- U.S. factory orders in September fell for the third time in the last four months as the faltering economic recovery restrains manufacturing. Companies are reluctant to boost orders until consumer and business spending strengthen, economists said. Federal Reserve policy makers may offer aid to the economy by lowering their benchmark interest rate when they meet Wednesday.
``Demand is weak, business profits aren't good, and companies are being very cautious,'' said Kevin Logan, chief market economist at Dresdner Kleinwort Wasserstein Securities LLC in New York. Factory orders decreased 2.3 percent, reflecting fewer bookings for commercial aircraft, machinery and communications equipment, the Commerce Department said. In August, bookings fell 0.4 percent. Airplane parts maker Goodrich Corp. said last month that reduced air travel this year has caused profits to fall. The economy is probably growing at a 2.2 percent annual rate this quarter, slower than the 3.1 percent pace of the previous three months, according to last month's consensus estimate of economists surveyed by Blue Chip Economic Indicators. Companies are hesitant to hire until the economy shows signs of improving.
U.S. employers announced plans in October to eliminate 176,010 positions, according to the placement firm Challenger, Gray & Christmas Inc. That's more than double the number in September and the most since January, when companies announced they were cutting 212,704 jobs. //www.quote.bloomberg.com