By Vicki Needham - 07/02/10 03:15 PM EDT
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.