U.S. Durables Orders Fell by Most in Seven Months

[Purveyor]

Source: Bloomberg News

Sept. 26 (Bloomberg) -- Orders for U.S.-made durable goods fell in August by the most in seven months, raising concern business investment will soften.

Demand for products meant to last several years fell a greater-than-forecast 4.9 percent after a revised 6.1 percent gain the prior month, the Commerce Department said today in Washington. Excluding transportation equipment such as airplanes, orders declined 1.8 percent after a 3.4 percent gain.

The drop in demand followed the biggest jump in almost a year, an illustration of how volatile the figures tend to be, economists said. Still, with housing in long-term decline and access to credit more costly and difficult, industrial demand may cool even as exports climb and inventories remain lean.

``Things are starting to cool a bit for business spending,'' Michael Gregory, a senior economist at BMO Capital Markets in Toronto, said before the report. ``Part of it is the uncertainty over demand going forward and part of it is that costs of borrowing have gone up.''



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aO7gmhvCPMB0&refer=home

[msongs]

1. but Ge0rge W told us the best thing we can do is go shopping! nt

[AndyA]

2. That's right - drag out those worn out credit cards and shop til you drop!

Of course, after almost 7 years of doing this, the American consumer doesn't have much credit left, which could be the reason for the slowing economy.

Unless you're the pResident, you can't just keep borrowing and borrowing. At some point, consumers must pay it back - they can't leave office and dump that responsibility on the poor schmuck who follows them in.

[Tempest]

3. Consumer spending is down

A recession is inevitable.