Factory Orders Down in January

New orders at U.S. factories dipped in January, the Commerce Department (search) said on Thursday, as demand for long-lasting durable items was revised lower.

Commerce said factory orders (search) fell 0.5 percent in January, in line with Wall Street expectations and their first drop since November. However, December factory orders were revised up to a 1.8 percent gain from the initially reported 1.1 percent increase.

Demand for durable goods (search) - those meant to last for three or more years - fell 2.3 percent in January, led by a sharp decline in transportation-related orders. In its initial report on durable goods released last week, Commerce had said orders dropped a smaller 1.8 percent.

Non-durable orders, which make up slightly less than half of all factory orders, offset some of the decline seen in the durables sector, rising 1.6 percent after a 2.0 percent gain in December.

Factory inventories were up 0.2 in January, their third rise in four months, according to Commerce.