New orders for U.S.-made goods plunged in April and business spending plans on equipment were much weaker than initially thought, suggesting business investment remained depressed early in the second quarter amid the COVID-19 pandemic.
The Commerce Department said on Wednesday factory orders dropped 13.0% after falling 11.0% in March. Economists polled by Reuters had forecast factory orders diving 14% in April.
The sector remains hobbled by supply chain disruptions following business closures around the globe to slow the spread of COVID-19. Social distancing measures at factories as they reopen are also hurting production. Cheaper crude oil, which has eroded profits in the energy sector, is also weighing on manufacturers of drilling equipment.
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