MEMO: MANUFACTURING DOWN IN JANUARY

A sharp drop in demand for airplanes, cars and other transportation products drove down orders to U.S. factories to their lowest point in 14 months, providing more evidence of an economic slowdown.

The Commerce Department, in its latest snapshot of manufacturing activity, reported Tuesday that all factory orders fell by 3.8 percent in January, after a 0.6 percent rise the month before.

Federal Reserve Chairman Alan Greenspan has blamed much of the economy's weakness on an effort by businesses to cut back quickly on production in the face of falling sales.