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Orders For Durable Factory Goods Plummet 7.3%

From the always rosy glassed Associated Press:

Orders for long-lasting US factory goods plunge

Orders for long-lasting US factory goods falls sharply as businesses cut back on spending

By Christopher s. Rugaber | August 26, 2013

WASHINGTON (AP) — Orders for long-lasting U.S. factory goods fell sharply last month as demand for commercial aircraft plummeted and businesses spent less on computers and electrical equipment.

Manufacturing continues to struggle and could prevent economic growth from picking up in the July-September quarter.

Manufacturing must be racist.

Orders for durable goods plunged 7.3 percent in July, the Commerce Department said Monday. It’s the steepest drop in nearly a year…

Durable goods are items meant to last at least three years…

The big drop suggests the third quarter is off to a weaker start than some had hoped. While economists cautioned that it’s just one month of data, a few lowered their growth estimates for the July-September quarter after seeing the durable goods report. Economists at Barclays Capital now predict third-quarter growth at an annual rate of 1.9 percent, down from their previous forecast of 2.1 percent…

Meanwhile, the last quarter’s GDP was only 1.7%.

"At the very least, it is a reminder that the expected pick-up in economic growth in the second half of the year will be gradual," Paul Ashworth, an economist at Capital Economics, said in an email…

Most analysts predict growth may pick up to about a 2.5 percent annual rate in the second half of the year.

Prosperity is just around the corner.

They note that steady job growth should fuel more consumer spending and the impact of higher taxes and government spending cuts are likely to fade…

What "steady job growth"? And why should the impact of taxes fade?

This article was posted by Steve Gilbert on Tuesday, August 27th, 2013. Comments are currently closed.

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