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Yesterday's weak durable goods number as the key sign things are heading south for U.S. manufacturing

Posted by L Levin on March 25, 2011 at 3:37pm
Indeed, surveys of industrial activity have been remarkably firm, but maybe it’s because these company executives are merely reporting what they’ve seen in their share price. What is happening on the expenditure side is a different story. U.S. durable goods new orders unexpectedly fell in February for the fourth time in the past five months, slipping 0.9% on the month (the consensus was looking for +1.2% ― and the stock market still rallied and in style to boot). Practically every sector was down. What is key for GDP is the core capital goods orders measure (nondefense capital goods new orders excluding aircraft) ― slid 1.3% after a 6% plunge in January. This is the steepest first back-to-back decline since January 2009.

Read more: http://www.businessinsider.com/david-rosenberg-manufacturing-2011-3#ixzz1HcsZyFip
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