Skip to comments.Over the cliff: Durable goods orders drop 13.2% in August
Posted on 09/27/2012 5:48:05 AM PDT by nhwingut
A key measure of the economy, especially in manufacturing, just had the bottom fall out. Orders for durable goods dropped 13.2% in August, the worst decrease in almost four years, and a large signal that the American economy is diving into a recession:
New orders for manufactured durable goods in August decreased $30.1 billion or 13.2 percent to $198.5 billion, the U.S. Census Bureau announced today. This decrease, down following three consecutive monthly increases, was the largest decrease since January 2009 and followed a 3.3 percent July increase. Excluding transportation, new orders decreased 1.6 percent. Excluding defense, new orders decreased 12.4 percent. Transportation equipment, down following four consecutive monthly increases, had the largest decrease, $27.8 billion or 34.9 percent to $51.9 billion.
The news was even worse for capital goods, indicating that businesses have stopped investing in themselves:
Nondefense new orders for capital goods in August decreased $18.5 billion or 24.3 percent to $57.7 billion. Shipments decreased $1.2 billion or 1.7 percent to $69.5 billion. Unfilled orders decreased $11.9 billion or 2.0 percent to $580.5 billion. Inventories increased $1.5 billion or 0.9 percent to $171.9 billion. Defense new orders for capital goods in August decreased $4.1 billion or 40.1 percent to $6.1 billion. Shipments decreased $0.1 billion or 1.7 percent to $8.1 billion. Unfilled orders decreased $2.0 billion or 1.2 percent to $165.6 billion. Inventories increased $0.4 billion or 1.8 percent to $21.4 billion.
(Excerpt) Read more at hotair.com ...
Just a bump in the road....
Headline on Bloomberg:
Jobless Claims in U.S. Fall More Than Forecast to Two-Month Low
So this is what the “Road to Recovery” looks like.
See you later, zer0!
Yep. That will be the lede on all the braodcats, with the GDP and the manufacturing a footnote. I think that’s why they released on same day. The drop in UE claims gives them a little cover.
This does not at all match a drop in the jobless rate. I’m not an economist but it seems to me these two reports should be reflective of each other, not so far apart, does not compute.
“Quick, find another Romney “gaffe” to focus on!” /WH Praetorian Guard (aka Press Corpse)
The private sector is fine. You know who said that.
Nah, just business weighing in on the uncertainty of the election. Give credit to the false polls contributing to the FUD factor, which is pegged high off-scale.
A drop in manufacturing last month won't result in lay-offs immediately.