10/27/2004

Durable Goods Rise Slightly

September showed a slight increase in the orders for durable goods-somewhere near 0.2%. One reason is the recent demand for communications equipment. Durable goods include things like cars, regfrigerators, and washing machines. Demand for such items is usually more volatile than non-durable goods because consumers can choose to pay for repairs and maintenance rather than buying a new unit if the economy is poor and income is l0w.

This rise in demand could be a sign that the economy is improving as more people have an increase in income which allows them to buy more instead of postponing purchases and maintaing their existing units.

However, the demand for such things has been see-sawing over the last year. June and July posted a rise after a big decrease in April and May. We'll have to see if the rise will continue. Surely the Presidential candidates are paying close attention to this.

4 comments:

Bryce Larkin said...

I believe the economy is doing better, but some people are still worried about the elections. If Kerry gets elected their might be less money for durable-goods because people with money will be taxed. This is the reason for a see-saw effect. I hate to blame the elections on the economy but in this circumstance it is an exception.

John West said...

The war in Iraq and the upcoming elections have played havoc with the American economy. Stability is what makes consumers feel safe in spending their money. I believe we haven't exactly lived in a stable world this past couple of years and hopefully we can find our way back to an area that is better than where we have been. We need a President that will take us to that place. You decide who think the man for the job is.

Maudi said...

Durable goods will continue to rise as fuel prices do. Many of the places where we get our durable goods ship those goods by truck. With the price of fuel out of control it cost more to ship that durable good to the consumer. The increase in durable goods is direct reflection of inflation and a sign that things are only going to get worse.

Dr. Tufte said...

Where the ManEc?