Factory orders drop 0.7% in October

WASHINGTON — Orders to U.S. factories slipped for a third straight month in October and would have fallen even more except for a big jump in defense orders.

A key category that tracks business investment spending fell for a second straight month.

The Commerce Department says factory orders fell 0.7% in October following declines of 0.5% in September and 10% in August. Demand for machinery, computers and primary metals were all down. An important category that is viewed as a proxy for business investment plans fell 1.6% following a 1.1% decline in September.

The overall decline would have been larger except for a surge in military orders, which jumped 21.2% in October, reflecting strong demand for military aircraft. Economists believe the recent weakness will be temporary.