U.S. Durable Orders Tumble 4.0% on Overseas Turmoil

[mahatmakanejeeves]

Last edited Wed Jul 27, 2016, 04:15 PM - Edit history (1)

Source: The Wall Street Journal.

U.S. Durable Orders Tumble 4.0% on Overseas Turmoil

June’s decline was largest since August 2014, but led by soft demand in the volatile civilian aircraft, defense sectors

By Eric Morath

Updated July 27, 2016 10:27 a.m. ET

WASHINGTON—Demand for long-lasting factory goods fell sharply in June, a sign overseas turmoil is weighing on U.S. manufacturers.

New orders for durable goods—aircraft, industrial machinery and other products that are designed to last at least three years—decreased a seasonally adjusted 4.0% in June from the prior month, the U.S. Commerce Department said Wednesday. The drop comes after May’s downwardly revised fall of 2.8%.

Read more: http://www.wsj.com/articles/u-s-durable-orders-dropped-in-june-by-most-in-nearly-two-years-1469622926

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At first, I could access the entire article. Now it is behind a paywall. Eric Morath's articles also appear at MarketWatch, which is a Dow Jones subsidiary.

My (and by "my," I mean my employer's) computer connection is acting up. I'll have to get that other link later.

ETA, Wed., 4:11 p.m.:

U.S. durable-goods orders sink 4% in June, biggest drop in almost two years

Published: July 27, 2016 10:01 a.m. ET

Lack of business spending holds back U.S. economy

By Jeffry Bartash
Reporter
[e-mail]

Orders for durable or long-lasting goods made in the U.S. sank 4% in June, marking the biggest drop in almost two years and reflecting ongoing struggles by American manufacturers to drum up sales and help boost the U.S. economy.

Economists polled by MarketWatch had expected a seasonally adjusted 1.7% decline.

The only standout performer: Auto makers. Orders for new cars and trucks rose 2.6%, reversing a similar decline in the prior month.

New orders fell most sharply for commercial airplanes and expensive military hardware such as ships, tanks and fighter jets. Passenger plane bookings dove nearly 60% and orders for defense capital good dropped 21%.

Stripping out the volatile transportation sector, orders fell a smaller 0.5%, the Commerce Department said Wednesday.

[tonyt53]

1. The Brexit bump. Most economists said there would be some of this, but it wouldn't last.

[Wellstone ruled]

2. The real change is

tons of Manufacturing that was in China and Korea,is now located in Northern Mexico. And that in it's self does not reflect in this data.

As far as the UK is concerned,well they sold off or moved their Manufacturing Industries in the eighties just like we here in the US did. They wanted to be the Finance Capital of the World and we now see how that worked out. Not everyone can shuffle paper.

[forest444]

3. NPR's Renée Montagne would always describe them as "items SUPPOSED to last at least 3 years"

Now, if they could only bring back Bob Edwards...