26
Nov

Durable goods orders fall unexpectedly in October

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cash-advance-22October continued to be a bad month for the economy as orders for big-ticket factory goods fell.  The move sent an alarm bell out with the economists who had not expected such a drastic fall in an economy that was showing improvement otherwise.

This drop marked the first decline since August and was especially concerning considering that September had showed a moderate gain. Experts were able to identify several reasons for the drop and one of those included a fall in the amount of defense department ordering of big ticket items.

Still, overall economists were disappointed by the numbers.  Most of the experts in the field had expected a rise of at least a half a percent for October, but least one of the areas where the numbers fell can be easily explained.  The automotive sector has been struggling even with cash incentives from the government.  Bigger firms like General Motors have been constantly losing money over several months, and with their increased inventories and lack of sales they had their part in these dismal October numbers for durable goods.

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