Wednesday, October 26, 2011

Durable goods demand shows economy strengthening

With the fourth quarter coming up, the demand for long
lasting items has significantly increased, giving the economy solid momentum
for going into the fourth quarter. There was also data that showed an increase
in economic activity due to the amount of homes sold and mortgages paid off in
the previous month. This past month showed an economic increase that was larger
than any increase in the past 5 months. The Commerce Department said “durable
goods orders excluding transportation rose 1.7 percent after falling by a
revised 0.4 percent in August. Economists had expected only a 0.4 percent
increase after a previously reported 0.1 percent dip. But a drop in demand for
transportation equipment as bookings for motor vehicles and civilian aircraft
declined pulled down overall orders by 0.8 percent. Overall the increase in
demand for more durable goods has shown strengthening in our economy.

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