Factory Orders Plunge 4 Percent

Orders to U.S. factories for bigticket durable goods took their biggest dive in more than three years in April, raising fears among some analysts that the U.S. economy is headed for a recession.

Led by a sharp drop in demand for autos, orders for items expected to last at least three years plunged 4 percent last month, the Commerce Department said Wednesday. It was the third straight decline and the biggest since orders sank 5.4 percent in December 1991.

In the April report, volatile transportation orders sank 9.3 percent as demand for new cars dwindled along with aircraft. Excluding transportation, durablegoods orders fell 2.3 percent after gaining 0.7 percent in March.

Overall, orders for durable goods totaled a seasonally adjusted $156.5 billion, down $6.5 billion from March. Still, new orders are 10 percent higher than the same period a year ago.