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Durable Goods Orders Plunge 7.3% as Firms Cut Back
[FOXBUSINESS] Orders for long-lasting U.S. manufactured goods recorded their biggest drop in nearly a year in July and a gauge of planned business spending on capital goods tumbled, casting a shadow over the economy early in the third quarter.The Commerce Department said on Monday durable goods orders dropped 7.3 percent as demand for goods ranging from aircraft to computers and defense equipment fell. That was the biggest decline since last August and snapped three consecutive months of gains. Orders for these goods, which range from toasters to aircraft, had increased 3.9 percent in June. Economists polled by Rooters had expected durable goods orders to fall 4.0 percent. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell 3.3 percent, breaking four straight months of gains. It was the biggest fall since February. Orders for these so-called core capital goods increased by a revised 1.3 percent in June. Economists had expected this category to increase 0.5 percent after a previously reported 0.9 percent gain in June. The decline in orders for both durable and capital goods suggested manufacturing will probably not bounce back as quickly as many economists had expected after hitting a speed bump early in the year. Posted by: Fred 2013-08-27 |
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