Orders to factories fell for a record fourth straight month in November, and analysts believe manufacturing will continue to suffer in coming months as the US slogs through a recession entering its second year.

The Commerce Department said that orders declined by 4.6 per cent in November, nearly double the 2.5 per cent drop economists expected. Orders have been falling since August, including a 6 per cent plunge in October, the biggest setback in eight years.

The weakness in November reflected a big drop in demand for commercial aircraft. Weakness also was seen in autos, primary metals such as steel, and defense communications equipment.

Separately, the Institute for Supply Management reported today that a closely watched gauge of activity in the services sector rose slightly in December but still remained at recessionary levels. The services sector index rose to 40.6 from 36.3 in November. Any reading below 50 signals contraction.

The factory orders report showed that demand for durable goods, items expected to last three or more years, fell by 1.5 per cent in November, even worse than the government's initial estimate two weeks ago that durable goods had fallen 1 per cent.

Demand for nondurable goods, items such as food, paper and petroleum products, dropped by 7.4 per cent in November following a 3.8 per cent decline in October. The declines for nondurable goods reflect falling demand and a big drop in prices, particularly for energy products.