Friday, September 25, 2009

Durable Goods Decline Mows Down Green Shoots

The evidence mounts that the U.S. economy is not in recovery mode:

Demand for U.S. durable goods unexpectedly fell in August, signaling companies are planning to curb spending on concern gains in sales will not be sustained.

The lasting damage of programs like Cash for Clunkers is to fool pundits and consumers into thinking we can borrow our way out of an insolvency-induced contraction. Purchasing managers and operations managers should know better, hence their realism in trimming orders.