Factory orders fell in December for a record fifth month in a row. With December's numbers now in the books, it is official that last year was the worst year for manufacturers since 2002.

Going into today's announcement, everyone agreed that factory orders had probably dropped in December, but analysts were not expecting the decline to be as steep as the actual figures revealed. Analysts had estimated that we would see a 3% dip in factory orders for the month, but the actual numbers indicate a deeper 3.9% reduction during December.

U.S. factory orders plunged 4.6% in November 2008, the U.S. Commerce Department announced Tuesday, as companies pared-back operations on slackening demand, due to the continuing U.S. recession.

Economists surveyed by Bloomberg News had expected November 2008 factory orders to decline 2.5%. Factory orders decreased 6.0% in October 2008.

Factory orders have now declined for four consecutive months and have declined 15.2% in the past year.

Economist Peter Dawson said the November 2008 factory order data "is more evidence of continued, broad weakness in the U.S. economy, stemming from decreased demand from both U.S. and international sources."

Here's a look at what's on the economic calendar for the week of January 5, 2009:

• Construction spending (Nov. 2008): Monday, 10:00 AM
• Ford Motor Co. U.S. sales (Dec. 2008): Monday, 1:00 PM
• New motor vehicle sales (Dec. 2008): Monday, 4:00 PM
• Factory orders (Nov. 2008): Tuesday, 10:00 AM
• Pending home sales (Nov. 2008): Tuesday, 10:00 AM
• ISM Non-Manufacturing Survey (Dec. 2008): Tuesday, 10:00 AM
• Monster Employment Index (Dec. 2008): Wednesday, 6:00 AM
• Challenger job-cut announcement (Dec. 2008): Wednesday, 7:30 AM
• Public debt (Dec. 2008): Wednesday, 3:00 PM
• Consumer credit (Nov. 2008): Thursday, 3:00 PM
• Employment situation (Dec. 2008): Friday, 8:30 AM
• Wholesale trade (Nov. 2008): Friday, 10:00 AM

For expectations from some of this week's earnings releases, see The week in preview: Family Dollar, Bed Bath & Beyond, KB Home, and others.

Money makes the world go round and its absence stops it in its tracks. Three important economic statistics reveal how important borrowing money is to the global economy. Borrowing is so critical, that its evaporation reveals a key economic insight -- prices are higher than customers can afford to pay out of their own pockets. This suggests three ways to get the economy moving: let prices fall to the level where customers can pay without borrowing; boost customers' income; or reopen the credit spigots. I'd vote for option one.

The bad statistics are in factory orders, auto sales and retail sales. Factory orders fell by 2.5% in September, four times faster than the 0.7% drop analysts expected. Automobile sales plunged more than they have in the last 25 years -- for example, General Motors Corp. (NYSE: GM) sales fell 45% in October. And retail sales are expected to fall 0.1% in October -- the weakest same-store sales result ever registered since Thomson Reuters began collecting estimates in 2000.

What a glorious economic mess the 43rd president is dropping into the lap of our 44th. All these contractions in sales share a common theme -- when companies and people can borrow money at low rates, they can afford to buy things. But when that credit dries up, their cash flows "from operations" are too small to close the deals.

Factory orders increased 0.6% in May, the U.S. Commerce Department announced Wednesday, on rising demand for computers and defense equipment. It was the third consecutive monthly rise in factory orders, the Commerce Department said. Excluding the often-volatile transportation component, factory orders increased 0.4%.

Economists surveyed by Bloomberg News had expected May factory orders to increase by 0.6%. Factory orders increased a revised 1.3% in April.

Economists follow the factory orders statistic because it provides one of the most comprehensive surveys of advance orders for durable goods -- how busy factories are likely to be in the period ahead. Factory orders also are a major value-added component of the U.S. economy.

In May, new orders rose 1.2%, bookings increased 0.6%, shipments rose 0.1%, and unfilled orders increased 0.1%. Also, the inventories-to-shipments ratio was virtually unchanged in May at 1.23, compared to 1.22 in April.

U.S. factory orders unexpectedly jumped 1.1% in April 2008, the U.S. Commerce Department announced Tuesday, primarily due to increased prices for gasoline and other petroleum products.

Economists surveyed by Bloomberg News had expected April 2008 factory orders to decline 0.1%. Factory orders increased 1.5% in March 2008.

Excluding a 7.9% decline in transportation goods, factory orders rose 2.6% April 2008.

In April 2008, durable goods orders fell 0.6%, orders and shipments for non-durable goods rose 2.8%, including a 6.3% increase in petroleum refinery orders. Excluding petroleum good orders, factory orders increased 0.4%.

Economists follow the factory orders statistic because it provides one of the most comprehensive surveys of advance orders for durable goods -- how busy factories are likely to be in the period ahead. Factory orders also are a major value-added component of the U.S. economy.

Economic Analysis: A pleasant surprise: a positive April 2008 factory orders report, although one must keep in mind the higher prices for gasoline and petroleum products, which skewed this month's statistic upward. Excluding petroleum goods, factory orders increased 0.4%, a more-modest increase. Still, it's better than a decline. Further, excluding the often-volatile transportation orders component, factory orders rose 2.6% -- again, not fantastic, but still a positive data point for the U.S. economy. The report also suggests that the manufacturing pullback during this economic slowdown will not be as large as previous slowdowns.

U.S. factory orders increased a surprising 1.4% in March 2008, the U.S. Commerce Department announced Friday, on rising international demand for U.S. goods. It was the fastest growth for factory orders since December 2007.

Economists surveyed by Bloomberg News had expected March 2008 factory orders to increase by 0.3%. Factory orders fell a revised 0.9% in February 2008, slightly better than the previously announced decline of 1.3%.

Also factory orders, excluding the volatile transportation equipment component, increased 2.2% in March 2008.

Economists follow the factory orders statistic because it provides one of the most comprehensive surveys of advance orders for durable goods -- how busy factories are likely to be in the period ahead. Factory orders also are a major value-added component of the U.S. economy.

Orders for durable goods increased 0.1% in March 2008, revised up from the 0.3% decline estimated a week ago. Orders for nondurable goods rose 2.6%, unfilled orders increased 1.1%, shipments climbed 1.1%, and inventories for manufactured goods rose 1.1%.

U.S. economy's saving grace: exports

Economist Peter Dawson told BloggingStocks Friday the economy "is making a concerted effort to complicate economists lives" by recording stronger-than-expected economic data, of late.

U.S. factory orders declined 1.3% in February 2008, the U.S. Commerce Department announced Wednesday, as the nation's manufacturers and wholesalers continued to trim operations on slack demand stemming from the U.S. economic slowdown.

Economists surveyed by Bloomberg News had expected February 2008 factor orders to decline 0.6%. Factory orders declined by a revised 2.3% in January 2008. Economists follow the factory orders statistic because it provides one of the most comprehensive surveys of advance orders for durable goods -- how busy factories are likely to be in the period ahead. Factory orders also are a major value-added component of the U.S. economy.

Also, in March 2008 shipments fell 2.1%, durable goods orders fell 1.1%, and new orders declined 1.1%.

U.S. factory orders fell for the first time in five months in January 2008, as the slowing U.S. economy compelled businesses to reduce spending, the U.S. Commerce Department announced Wednesday.

Factory orders fell 2.5% in January 2008, after a revised 2% increase in December 2007. Analysts surveyed by Bloomberg News had expected factory orders to decrease 2.6% in January 2008.

Excluding orders for transportation equipment, factory orders declined 0.4%.

Durable goods orders fell a revised 5.1%, compared with the prior estimate of a 5.3% decline. Core capital equipment orders fell 1.5%. Orders for non-durable goods rose 0.3%.

Inventories of manufactured durable goods increased 0.6%, and have risen in six of the last seven months. Unfilled orders for manufactured durable goods increased a revised 0.7%, and have increased in 32 of the last 33 months. Shipments increased 2%, following two consecutive monthly decreases.

U.S. factory orders increased in December 2007 -- a sign that business spending remains resilient even as employers pull-back regarding hiring plans.

Factory orders increased 2.3% in December 2007, in-line with the 2.3% consensus estimate, the U.S. Commerce Department announced Monday, in a statement. Factory orders rose a revised 1.7% in November 2007. Excluding transportation orders, factory orders increased 0.7% in December 2007.

Durable goods orders drove factory orders -- increasing 5% in the month. Orders for nondurable goods fell 0.4%; machinery increased 7.3%, and electronics rose 4.1%