U.S. durable goods orders fell 1.7% in February 2008, as demand for machinery dropped substantially, the U.S. Commerce Department announced Wednesday.
Economists surveyed by Bloomberg News had expected February 2008 durable goods orders to rise 0.7%. Durable goods orders decreased a revised 4.7% in January 2008. Excluding transportation, durable goods orders fell 2.6% in February 2008, the biggest decline since January 2007.
Machinery orders weigh
In February 2008, capital goods orders fell 2.6% following a 1.8% drop in January 2008, as businesses cut back purchases that enhance productivity -- historically a sign that they believe sluggish economic times are ahead. Equally telling, machinery orders plunged 13.3% in February 2008. Motor vehicle orders dropped 2.7%. Aircraft orders were a bright spot, rising 5.4%.
Shipments dropped 2.1%, the most since January 2007. Orders excluding defense equipment declined 1.6% and bookings for military gear plummeted 10%.
More bad news for U.S. economy
Economist David H. Wang told BloggingStocks Wednesday the disappointing February 2008 durable goods statistic is more troubling news for the economy.
"If we're not in a recession right now, I don't know what nation is," Wang said. "Demand is weakening and American corporations are putting off capital goods purchases on what they're seeing in the home economy, which is softer demand." Wang added that U.S. multinational corporations will continue to benefit from decent export sales, particularly to emerging markets, but domestic market-oriented companies will show "clear effects of the U.S. slowdown" in their quarterly results this year.
Economists surveyed by Bloomberg News had expected February 2008 durable goods orders to rise 0.7%. Durable goods orders decreased a revised 4.7% in January 2008. Excluding transportation, durable goods orders fell 2.6% in February 2008, the biggest decline since January 2007.
Machinery orders weigh
In February 2008, capital goods orders fell 2.6% following a 1.8% drop in January 2008, as businesses cut back purchases that enhance productivity -- historically a sign that they believe sluggish economic times are ahead. Equally telling, machinery orders plunged 13.3% in February 2008. Motor vehicle orders dropped 2.7%. Aircraft orders were a bright spot, rising 5.4%.
Shipments dropped 2.1%, the most since January 2007. Orders excluding defense equipment declined 1.6% and bookings for military gear plummeted 10%.
More bad news for U.S. economy
Economist David H. Wang told BloggingStocks Wednesday the disappointing February 2008 durable goods statistic is more troubling news for the economy.
"If we're not in a recession right now, I don't know what nation is," Wang said. "Demand is weakening and American corporations are putting off capital goods purchases on what they're seeing in the home economy, which is softer demand." Wang added that U.S. multinational corporations will continue to benefit from decent export sales, particularly to emerging markets, but domestic market-oriented companies will show "clear effects of the U.S. slowdown" in their quarterly results this year.
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