Reluctance Of Businesses To Invest In Large Purchases Could Maintain Drag On US Economic Recovery

Thursday, October 25, 2012 18:38
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Reluctance Of Businesses To Invest In Large Purchases Could Maintain Drag On US Economic Recovery

Tags: economic indicators | Economic Outlook | economy

Although orders for durable goods rose significantly in September, orders for computers and communications equipment stalled. This signifies a slowdown in investment that could hurt US economic growth.
 
Bookings for non-defense capital goods excluding aircraft are considered an indication of future spending trends and were virtually unchanged at up .2% for August.

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The report shows that businesses are still not confident enough in the economic recovery to commit to large purchases.

 
But consumer confidence rose to minus 34.6 from minus 34.8 in the previous period, noting the most optimism on the economy since May.
 
Manufacturers are acknowledging a slowdown and factories are under pressure as the fiscal cliff of $600 billion in tax increases and federal spending cuts approaches.
 
The National Association of Realtors showed fewer existing home sales than estimated for September, indicating the recovery in the housing industry will be uneven.

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