Demand for long-lasting goods took the largest tumble in five months during June as orders fell for cars and planes, but bookings other than transportation rose strongly and a gauge of capital spending climbed.
Manufacturers' orders for durable goods decreased by 2.5% last month to a seasonally adjusted $158.57 billion, the Commerce Department said Wednesday.
Orders for commercial planes dropped, down 38.5%. Aircraft giant Boeing Co. has suffered production delays of its new 787 Dreamliner.
Motor-vehicle orders were also lower, by 1.0%. Car makers General Motors and Chrysler are restructuring after filing for bankruptcy.
The demand for durable goods is considered an accurate barometer of the health of the economy.
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Durable goods are down 25% from last year. This has been the case the entire quarter. Should be no surprise when the Q2 GDP growth report on Friday is also negative.
ReplyDeleteThe recession lumbers on.
Kimberly Amadeo