US durable goods orders drop 13.2 pct. in August; key measure of business investment plans up

CP20255734
In this July 19, 2012 photo, a shopper looks at washing machines in a Best Buy store in Pittsburgh. THE CANADIAN PRESS/AP, Gene J. Puskar

WASHINGTON – Demand for long-lasting U.S. manufactured goods plunged in August because of a huge drop in volatile commercial aircraft orders. But in a hopeful sign, orders that reflect business investment plans rose solidly.

The Commerce Department says total durable goods orders fell 13.2 per cent in August, the biggest drop since January 2009 when the country was in recession. Aircraft orders fell by 101 per cent.

Business orders for machinery, electronics and other equipment, which are a good indication of their investment plans, rose 1.1 per cent. That’s the first increase since May.

The overall drop in August put total orders at $198.5 billion, 33.5 per cent above the recession low hit in April 2009. But manufacturing has been weakening in recent months, along with the broader economy.

News from © The Associated Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Create a free account

The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.

Related Articles