Factory orders fall in May after nine months of gains

Factory orders dropped more than originally forecasted in May after nine straight months of gains, causing concerns about the strength of the nation's economic recovery. 

Orders for manufactured goods declined 1.4 percent in May, the largest slide since March 2009, adding to recent data suggesting the surge is stalling, the Commerce Department said Friday.

The report reflects concerns raised by the Federal Reserve that the European debt crisis could affect the chances of a sustained U.S. recovery.  

Analysts are looking to the manufacturing sector to prop up the economy, especially as joblessness remains high and the demand for exports falls. 

A report Thursday showed manufacturing in June expanded at the slowest pace this year, adding to the concerns. 

Excluding transportation sector, orders fell 0.6 percent compared with a drop of 0.7 percent in April, the worst performance in 13 months. 

In April, orders grew at a revised rate of 1 percent. 

As consumers have been hesitant to make big-ticket purchases, orders to those items were down 0.3 percent in May. Electronics were among the weakest performers.