Durable goods orders fall 4.5%

Greatest decline in orders of manufactured goods since January signals continued economic weakness.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Lara Moscrip, CNNMoney.com contributing writer

What's your view about granting taxpayers stock in any company taking part in the proposed $700 billion bailout?
  • It's needed to approve the plan
  • The plan should be approved with no conditions
  • No bailout in any form

NEW YORK (CNNMoney.com) -- Orders for durable goods posted the biggest decline in seven months in August, according to Thursday's report from the Department of Commerce that raises economic caution flags for the second half of 2008.

Orders fell 4.5%, more than the 1.3% drop expected by a survey of economists by Briefing.com. In January, durable orders were down 4.7%.

"We are seeing weaker activity in manufacturing," said Sam Bullard, economist at Wachovia Bank. "There's not a lot of positives in this report."

The data for August followed three consecutive monthly increases, including a downwardly revised 0.8% July rise.

The weak report was driven by softness in new orders for commercial aircraft and motor vehicles, according to Bullard.

Excluding defense goods, new orders decreased 5%, and they fell 3% excluding transportation products, showing a manufacturing sector battered by the slowdown facing the overall economy.

The report is a precursor to weak business capital spending in the second half of the year, resulting in a bleaker economic forecast, Bullard said.

Durable orders - goods built to last 3 years or more - measures the dollar volume of orders, shipments and unfilled orders of durable goods. The report is considered an indicator of manufacturing activity. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
9 reasons to be excited about Windows 9 Microsoft is expected to begin showing off Windows 9's features later this month. Here are the expected changes you should be thrilled about. More
8 must-have travel apps Whether you've got wanderlust or an airline grievance, here are some apps to pack onto your phone. More
Hot stocks: 10 record breaking companies The S&P 500 is trading at all-time highs, and many well-known businesses are leading the charge. Time to buy or sell? More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.