Durable Orders Fall 0.9%
While it certainly cannot be described as
tremendously bad news, it still must disappoint the economic optimists. The
economy still can't seem to take off. The good indicators are always balanced by
bad ones. Here we find durable goods orders falling. Only about a percent, but
still they're declining. A decline in durable goods orders is often seen as an
indication that the economy is about to experience a downturn.
Now combine this with the bad news about the
dollar and the spike in oil prices and we have all the elements for a nasty
recession by this Summer or Fall. Keep in mind that consumer prices are not yet
reflecting the full extent of the dollar's decline. Since so many consumer goods
sold in the U.S. are imported from foreign countries, their prices have to start
rising. This could have a devastating affect on retail business in
America.
Posted: Thu - February 24, 2005 at 11:36 PM