America’s rollercoaster recovery from recession continues to confound the prophets, with the Commerce Department reporting a 3.8% drop in durable goods orders for June – the steepest fall for seven months.
The decline is the first since March and follows a 0.6% increase in May. Analysts had been expecting another 0.6% rise for June, but instead all categories of durable goods (items designed to last over three years) registered a fall.
Also causing concern is the Commerce Department’s report of a 1.4% fall in shipments, considered an indicator of current demand. There are fears that businesses are losing confidence in the economy’s prospects for recovery.
Data sourced from: New York Times; additional content by WARC staff