Wednesday, July 29, 2009

Durable Goods... "There Goes the Optimism" Edition

Remember last months jump in durable goods (that turned out to be a jump only in aircraft)? Well, looks like it wasn't so sustainable (or as large as first thought). Reuters details:

New orders for long-lasting U.S. manufactured goods fell more sharply than expected in June, notching their biggest decline in five months as demand for communications and transportation equipment slumped, a government report showed on Wednesday. The Commerce Department said durable goods orders fell 2.5 percent, the largest drop since January, after rising by a revised 1.3 percent in May, previously reported as a 1.8 percent surge. This was worse than market expectations for a 0.6 percent decline. Orders had advanced for two straight months.

Source: Census


  1. It would be helpful if you could provide information about the relative size of each category. If you could manage to do so together with the percent change chart it would be even better.

  2. What irritated me about last month's MSM reporting on the growth in durable sales was their outright deliberate ignoring of the virtually-assured one-time reporting on aircraft.

    Talk about not seeing the forest for the green shoot.

  3. anon- we'll see what i can do going forward. for now, click on the census link and go to table 1 for all the data...

  4. Nice chart. I linked to it in my blog.

    If you look at year over year numbers, it is even worse - 25% decline from last year. This means Friday's Q2 GDP report should be negative again.


  5. a drop in goods or a boom depends upon the law of supply and demand. and when recession (which is baby depression) comes along such turning of fates is likely to occur.