WALL Street stocks were slightly lower as the latest US economic data bolstered an upbeat inflation outlook, but not enough for investors to bid an already pricey blue-chip sector even higher.

The Commerce Department reported that orders to US factories fell 1.9 per cent in August, the largest drop in over 2 years.

Declines outnumbered advances by a 10-to-9 margin on the New York Stock Exchange, with 1,131 up, 1,264 down and 862 unchanged.

NYSE volume totalled 386.12 million shares, against 439.29 million in the previous session.

The Standard and Poor's 500-stock index fell 1.23 to 692.78, and the NYSE's composite index fell 0.40 to 370.14. Both indexes had closed at record highs on Monday, Tuesday and Wednesday.

The Nasdaq composite index fell 3.02 to 1,233.09, and the American Stock Exchange's market value index rose 0.75 to 572.60.