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U.S. durable-goods orders fall again, but don't be fooled. The economy is getting stronger
Home > Economy & Politics > Economic Report
Economic Report
U.S. durable-goods orders fall again, but don’t be fooled. The economy is getting stronger
Last Updated: Nov. 24, 2021 at 8:39 a.m. ET
First Published: Nov. 24, 2021 at 8:19 a.m. ET
By Jeffry Bartash
Business investment rises for eighth month in a row and is up strongly in the past year
The numbers: U.S. manufacturers such as General Motors and Whirlpool have plenty of orders, all right. The problem is producing enough autos, appliances and other big-ticket items to satisfy customer demand.
Orders for U.S durable goods — products meant to last at least three years — fell 0.5% in October, the government said Wednesday. Economists polled by the Wall Street Journal had forecast a 0.3% increase.
Yet the decline stemmed entirely from fewer orders for passenger planes, an up-and-down category that often distorts the level of underlying demand in the economy.
Bookings rose 0.5% if autos and planes — transportation — are excluded.
Over the past year orders for durable goods have risen by more than double digits in percentage terms and easily exceed pre-pandemic levels. Business investment has also increased sharply and rose in October for the eighth straight month.
The biggest problem for manufacturers is finding enough workers and supplies to make as much as they could sell. Persistent shortages of labor and materials have slowed production and contributed to the biggest surge in U.S. inflation in 31 years.
{snip}
Economic Report
U.S. durable-goods orders fall again, but don’t be fooled. The economy is getting stronger
Last Updated: Nov. 24, 2021 at 8:39 a.m. ET
First Published: Nov. 24, 2021 at 8:19 a.m. ET
By Jeffry Bartash
Business investment rises for eighth month in a row and is up strongly in the past year
The numbers: U.S. manufacturers such as General Motors and Whirlpool have plenty of orders, all right. The problem is producing enough autos, appliances and other big-ticket items to satisfy customer demand.
Orders for U.S durable goods — products meant to last at least three years — fell 0.5% in October, the government said Wednesday. Economists polled by the Wall Street Journal had forecast a 0.3% increase.
Yet the decline stemmed entirely from fewer orders for passenger planes, an up-and-down category that often distorts the level of underlying demand in the economy.
Bookings rose 0.5% if autos and planes — transportation — are excluded.
Over the past year orders for durable goods have risen by more than double digits in percentage terms and easily exceed pre-pandemic levels. Business investment has also increased sharply and rose in October for the eighth straight month.
The biggest problem for manufacturers is finding enough workers and supplies to make as much as they could sell. Persistent shortages of labor and materials have slowed production and contributed to the biggest surge in U.S. inflation in 31 years.
{snip}
