Fall in US durable goods orders

July 28th, 2011 - 11:39 am ICT by IANS  

Washington, July 28 (IANS/EFE) US firms saw a 2.1 percent decline last month in orders for durable goods such as aircraft, computers and heavy machinery, the Commerce Department said Wednesday.

Orders for long-lasting items climbed 1.9 percent in May after a 2.5 percent fall the previous month.

The negative figure in June was due mainly to a 8.5 percent drop in demand for transportation products, including military aircraft, as the rest of the durable goods sector enjoyed a 0.1 percent increase.

Excluding aircraft, orders for capital goods slid 0.4 percent in June, compared with a 1.7 percent gain in May.

The Commerce Department report indicates businesses are reluctant to make large new investments given continued economic uncertainty, while ongoing high unemployment - 9.2 percent - puts a damper on consumers spending, which accounts for nearly 70 percent of US economic activity.


Related Stories

Tags: , , , , , , , , , , , , , ,

Posted in Business |