Dissecting Durable Goods Data
It's always important to look at the details in economic data reports. For example, the headline for this morning's Durable Goods report indicated a plunge in new orders of 5.2%. That may sound bad, but bear in mind that this decrease followed a 3.7% December increase – and three previous consecutive monthly increases.
The rest of the report contains a few key takeaways. The first is that the weakness was concentrated in two limited areas. Nondefense aircraft orders, an often volatile segment, fell by 34%. When you exclude transportation, new orders actually rose by 1.9%, following gains in prior months....556 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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