Durable Goods Orders Plunge; Consumer Spending Slips

Here’s your daily dose of awful economic news. Domestic durable goods orders fell 6.2% in October:

MarketWatch: Orders for U.S.-made durable goods fell 6.2% in October, the largest decline in two years, the Commerce Department estimated Wednesday, as orders for transportation goods fell 11.1%. Economists surveyed by MarketWatch had expected an overall decline of 2.5%. Excluding transportation, orders fell 4.4%. Orders for core capital equipment – the kind of investments businesses make to expand or update their productive capacity – fell 4% in October, after a 3.3% decline in September.

Note the large dropoff in transport sales, so perhaps there’s some effect from the Boeing strike there (not sure on that).

And the consumer — the backbone of the economy — is wilting, which was already obvious by looking at the results of practically every single retailer in the country. The decline of 1.0% was the worst since September 2001, the month that the US suffered its worst terrorist atack in history.

And were not sure if this is a bright spot or not, but jobless claims actually fell a little, while personal income ticked up modestly.

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