"Unexpected" Decline in Durable Goods Orders; Highest Level of Inventories Ever; Capital Goods Orders Plunge 4.1 Percent

"In the wake of a clearly slowing global economy why a drop in durable goods orders would be unexpected is a mystery.

Nonetheless, that is what Bloomberg reports in Orders for U.S. Durable Goods Fell in June

Orders for U.S. durable goods unexpectedly dropped in June, raising the risk that a slowdown in business investment will weigh on the world’s largest economy in the second half of the year.

Manufacturers face a slowdown in consumer spending just as they are poised to rebound from the parts shortages caused by Japan’s earthquake, indicating production may keep cooling. Companies are also cutting back on hiring, which may further temper household demand.

Orders excluding volatile transportation equipment, like commercial aircraft, increased 0.1 percent after a 0.7 percent gain, the Commerce Department said. Demand for transportation gear dropped 8.5 percent, countering industry data..."

at  http://globaleconomicanalysis.blogspot.com/2011/07/unexpected-decline-in-durable-goods.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29