By Christopher S. Rugaber
Associated Press
Saturday, September 26, 2009
Orders for durable goods such as aircraft and electronics fell unexpectedly in August, while sales of new homes rose less than expected, renewing concerns about whether the economy can sustain a recovery with consumer spending held back by job losses, tight credit and falling home values.
Still, economists said the figures -- which follow weaker-than-expected data Thursday on existing home sales -- also reflect a volatile economy emerging from the worst recession since the 1930s. U.S. stock markets closed lower Friday, with the Standard & Poor's 500-stock index slipping 0.6 percent to 1044.38.
"No one said this would be a smooth recovery," Benjamin Reitzes, an economist at BMO Capital Markets, wrote in a note to clients. "The data will likely continue to improve in fits and starts."
The Commerce Department said Friday that orders for durable goods dropped 2.4 percent in August, after rising a revised 4.8 percent in July. Economists had expected a 0.5 percent increase, according to a survey by Thomson Reuters. It was the second drop in three months in orders for goods expected to last at least three years.
A category known as "non-defense capital goods, excluding aircraft," a gauge of business investment in machinery and other items, fell 0.4 percent, its second straight drop. It fell 1.3 percent in July. Some economists said they were concerned that the two straight declines show businesses aren't confident enough in the recovery to boost their investment in equipment.
Saturday, 26 September 2009
Latest Data Show Volatile Economy Took a Few Steps Back
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