Durable goods orders are collapsing. WASHINGTON

[The Great Aztec Joe]

Durable goods orders are collapsing.
WASHINGTON (AP) -- Orders to U.S. factories for big-ticket manufactured goods increased slightly in July, but businesses spent less as the economic recovery lost momentum.

Demand for durable goods rose 0.3 percent last month, the Commerce Department said Wednesday. The overall increase was driven by a 75.9 percent increase in orders for commercial airplanes.

Without the volatile transportation sector, orders dropped 3.8 percent -- the steepest decline since January. Businesses spent less on equipment and machines. Orders for capital goods fell 8.0 percent.

Machinery and computers were especially hard-hit. Orders for machinery dropped 15 percent, the biggest decline on record for that category.

The report was grim compared to June's results. Overall orders in June declined by a revised 1.0 percent.

[The Great Aztec Joe]

It is beginning to look more and more like we are up SHEEEEET CREEK, and we do not even have a paddle.

[aztecwin]

A lot of the problem is the uncertainty of the policy direction from Washington. We are going to be in choppy waters till after the mid-term.

[The Great Aztec Joe]

Aug 25, 2010 11:54:28 GMT -8 aztecwin said:

A lot of the problem is the uncertainty of the policy direction from Washington. We are going to be in choppy waters till after the mid-term.

Our policies are such that the government is essentially doing nothing to "encourage" industry.

As I have been saying, even though we are mainly (70%) a service sector economy (People performing services for other people), something like twenty percent of the country is manufacturing and that is a big chunk of the economic pie (Especially when you consider that it is twice as big as Communist China).

The income of those manufacturing employees is the grease that keeps the service sector humming and moving. No liberal application of grease, and no positive growth.