The factor analysis is a multivariate statistical method.The purpose of the method is transforming multiple measured variables into a few disrelated comprehensive indexes.The factor analysis of many economical indexes was preformed in this paper based on the statistical data of economy development in Liaoning province in 2000，2005 and 2010. The economy development levels in fourteen cities were analyzed and evaluated and the corresponding policies on the economy development and decisionmaking for each prefecturelevel city in Liaoning province were suggested.