U.S. factory orders fall for fourth month in past five

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Factories orders fell in February for the fourth time in five months.

The numbers: Factory orders in the U.S. fell in February for the fourth time in five months, reflecting a slowdown in the economy that began late in 2018 and carried on through the early part of the new year

Orders dropped 0.5% in the month, the government said Monday. Economists polled by MarketWatch had forecast a 0.4% decline.

There are some signs that business might be re-accelerating as spring gets underway, but more evidence is needed.

Read: Hiring speeds up as U.S. economy adds 196,000 jobs in March

What happened: Orders for durable goods — products meant to last at least three years — fell by an unrevised 1.6% in February. These products include autos, airplanes, appliances, computers and the like.

Orders for nondurable goods such as clothes, paper and processed foods rose 0.6%. They account for about half of all factory orders.

A closely followed gauge of business investment — known as core orders for durable goods — fell slightly. They’ve fallen three of the past four months.

Big picture: Manufacturers are still expanding, but they’ve turned more cautious since last summer. U.S. trade tensions with China, a weaker global economy and stronger dollar have combined to dampen demand and force businesses to reevaluate their plans.

The manufacturing segment is still influential enough to act as a drag on growth, but the service side of the economy is much larger and it’s expanding a bit faster. The U.S. is still on track to set a record for largest expansion ever by early summer.

Read: Goldilocks economy? No. But steady job gains, low inflation to keep recession at bay

Market reaction: The Dow Jones Industrial Average DJIA, -0.39% and S&P 500 SPX, -0.15% fell in Monday trades, jeopardizing a five-day winning streak.

The 10-year Treasury yield TMUBMUSD10Y, -0.18% rose a tick to 2.5%. Yet yields are still much lower compared to late last year, when they hit a seven-year high of 3.23%.