Economists were dead wrong about how many dishwashers and aircraft were sold in August> While we can question their accuracy we can't question that the the economy is doing extremely well.
Durable goods orders from corporations rose 4.5% year over year in August, according to the Census Bureau. That's far higher than the 2.2% increase economists had predicted.
Pair that with 4.2% GDP growth and the Federal Reserve's strong assessment of the U.S. economy (the central bank raised interest rates another 25 basis points on Wednesday), and some on Wall Street have taken the data to be encouraging.
"Taken together with the Fed's comments yesterday and today's GDP revision, we seem to be enjoying a bit of a sweet spot where inflation and growth are in sync," Mike Loewengart, vice president of investment strategy at E*Trade, told TheStreet.
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Taking a closer look at how large companies have managed their supply chains can paint an even clearer picture. Not only was there a 4.5% increase in durable goods orders, or a total of $259.6 billion, $11 billion more than the year-ago period, but new capital goods orders for non-defense companies increased 7.6% to $81.3 billion. Transportation equipment orders popped 13% in August as well.
The Dow Jones Industrial Average
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