Durable goods orders dropped 3.8% when transportation goods were backed out. Total new orders for manufactured goods rose .3%, less than expected, to $193 billion, according to the Commerce Department.
Inventories of manufactured durable goods rose .6% to $311.2 billion. The inventory build-up may give companies the opportunity to cut orders if the economy continues to slow. That should depress orders as the year goes on.
Transportation equipment orders ran against the overall trend– up 13.1% to $52.6 billion.
The data shows that the economic slowdown, which looks more and more like a double-dip recession, has moved from employment, housing, consumer confidence, and retail to the manufacturing sectors. All of these drops combine to paint a picture of a US economy that has slowed considerably in the last 60 days.
CBO estimates are that most of the $787 billion Obama stimulus package has been spent, leaving mostly funding for infrastructure. That, in and of itself, it not sufficient to buoy the economy.
Congress and the President appear ready to eliminate the Bush tax cuts at year end. But, without stimulus and with higher taxes, which may be regressive, the drop in GDP growth could become negative before the end of the year.
Douglas A. McIntyre
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.