THE ECONOMY

Big Drop in Machine Tool Orders: Orders for American-built machine tools fell in January, largely due to domestic customer uncertainty about the effects of President Clinton’s economic plan, the industry’s trade group said. The Assn. for Manufacturing Technology said January orders totaled $175.25 million, down 15% from December and off 19.4% from January, 1992. Albert Moore, association president, said the slowdown in January orders reflected a lack of understanding by U.S. manufacturers of the investment tax credit proposal in Clinton’s plan. The credit would be used to encourage companies to purchase new equipment; large companies would qualify for a 7% credit for two years while smaller firms would enjoy a permanent credit. Orders for machine tools provide a barometer of future industrial health because the tools are needed to produce a broad range of goods.