2/27/2005

Why are durable goods declining?

In the article, U.S. Jan durable goods orders drop on cars, planes, it talks about how the demand for long lasting American goods which is goods lasting for three or more years are declining. This decline in durable goods comes as a bite of surprise because “Wall Street economists had expected durable goods order to rise 0.1 percent.” A 9.8 percent decline happened in the defense capital goods which was also a shock because there was a 56.9 percent advance in military aircraft orders. The demand for computers, vehicles, and aircraft was also down. Yet, the demand for metals and machinery where up. What could be causing this trend? Will it hurt growth in the coming year?

1 comment:

Dr. Tufte said...

What does this have to do with ManEc?

I wouldn't worry too much about this - it sounds like a routine short-term fluctuation.