Posted on 09/29/2012 4:39:15 PM PDT by 2ndDivisionVet
Economists often note that durable goods orders is one of the more volatile economic indicators that we get every month.
However, there wasn't much sugar-coating anyone could do to the Thursday's report that showed durable goods orders plunged 13 percent in August. Economists were looking for a 5.0 percent decline.
In his latest Breakfast with Dave note, David Rosenberg points to one sub-component of the durable goods report that sent a particularly scary signal.
The three-month moving average of core capex orders (i.e. nondefense capital goods excluding aircraft) was -4.1 percent in August.
"History shows when the trend weakened to the level we see today, the economy was in recession 100% of the time," wrote Rosenberg. "So stick that in you pipe and smoke it!"
This is also bad news for jobs...
(Excerpt) Read more at businessinsider.com ...
Well, it was UNEXPECTED. /s
so what defince a recession versus a depression
I like that people have been calling this “The Great Recession”
When you don’t have a job, it’s a recession. If I don’t have a job, it’s a depression.
13% decline is bad? So 5% decline must be good.
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