Ed Morrissy at Hot Air always watches federal government statistics and economic reports, providing a good, easy to understand explanation. Today, the U.S. Census Bureau announced orders for manufactured durable goods in January declined 4 percent.
The first hint of this came in the 2011Q4 GDP report. While the topline number of 2.8% looked mediocre but not horrid, the figure for growth in real final sales of domestic product — which measures end sales and not inventory adjustments — registered only at 0.8%, barely above recession level. I noted that this was a red flag for the next quarter and a sign of dropping demand, but today’s report on durable goods was much worse than that indicated.
Read his full post, where he also notes inventories manufactured durable goods continue to rise.