When it comes to
durable goods, the trend is still nobody's friend.
Orders for durable goods fell by 2% in the month of June, far worse than the 0.8% decline expected by economists polled by
. The report confirms steady, continuing weakness in the manufacturing sector, showing that businesses overall aren't investing any money on capital. This isn't really much of a surprise, considering the change in the economy, but it's dreary nonetheless.
Excluding transportation equipment, which can be volatile, orders fell 1.5%. Orders of primary metals dropped 1.8% in June, while orders of computers and electronic equipment dropped 3.2%.
The annualized trend is more disturbing. On a year-over-year basis, durable goods orders are down 22.1% from this time a year ago. Excluding transportation orders, spending on durable goods is off 15.6%. The year-over-year decline is pronounced in all areas, ranging from the 6.7% decline in fabricated metal products to the 61% decline in communications equipment. Orders of nondefense capital goods, a good measure of business investment, are dropping at a 23.5% annualized rate.
The revised numbers for May show a 2.7% increase in durable-goods orders, down from the 3% preliminary figure.