Durable goods orders, a key indicator for the manufacturing industry, fell unexpectedly in August. It was the second drop in three months and the latest sign that any rebound inside the nation's factories is likely to be slow.
The Commerce Department said orders for goods expected to last at least three years fell 2.4 percent, after rising 4.8 percent in July. Economists polled by Thomson Reuters had forecast an increase of 0.5 percent.
Durable goods orders, new home sales disappointWASHINGTON (AP) ¿ Orders for durable goods like aircraft and electronics fell unexpectedly in August, while sales of new homes rose less than expected. The weak reports renewed 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 on existing home sales Thursday ¿ also reflect a volatile economy emerging from the worst recession since the 1930s. Orders for durable goods dropped 2.4 percent in August, after rising a revised 4.8 percent in July, the Commerce Department said Friday. 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.