Orders for U.S. Durable Goods Unexpectedly Fell in June

[marmar]

(Bloomberg) Orders for U.S. durable goods unexpectedly dropped in June and inventories climbed at the slowest pace in a year, evidence that companies lost confidence in the strength of the recovery as the second quarter ended.

Bookings for goods meant to last at least three years fell 2.1 percent after a 1.9 percent gain the prior month that was smaller than last reported, the Commerce Department said today in Washington. The median forecast of 76 economists surveyed by Bloomberg News projected a 0.3 percent increase. Orders excluding transportation equipment rose less than forecast and demand for business equipment dropped.

Manufacturers face a slowdown in consumer spending just as they are poised to rebound from the parts shortages caused by Japan’s earthquake, indicating production may cool. Employers are also cutting back on hiring, which may further temper household demand, which accounts for 70 percent of the economy.

“There’s really no reason for companies to increase production or increase hiring, and that’s going to lead to a very stagnant growth environment for quite some time,” Lindsey Piegza, an economist at FTN Financial in New York, said before the report. “We’re still in a very tepid recovery. Japan still is a lingering drag on the number because certain sectors are not back to full capacity.” ...........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-07-27/orders-for-u-s-durable-goods-unexpectedly-decreased-in-june.html

[AngryAmish]

1. Unexpectedly? No it is not.

We don't know what we are doing.

[Dawgs]

2. LOL! Unexpected by who? n/t

[Prism]

3. Why do all these stories contain "unexpectedly"?

I keep seeing this word attached to just about every story imaginable. The economy is in the toilet. If economists aren't expecting these things, maybe they're not very good at their jobs and should stop being consulted on these things.

[AngryAmish]

5. Economists are not good at their jobs

The problem with the future is that we cannot predict it. We should stop pretending we can.

[iwishiwas]

4. How can Anyone say unexpectantly anymore!!!