Demand for Long-Lasting Goods Falls by the Largest Amount in 6 Months

Real or constant currency new orders of durable goods - ex. defense and aircraft have contracting consistently since 2001. The real economy remains weak and highly dependent on currency devaluation, commonly known as QE, to maintain the illusion of growth.

Gold-Adjusted New Orders of Durable Goods ex. defense and aircraft (BCCSGLDR) and YOY Change:


Headline: Demand for Long-Lasting Goods Falls by the Largest Amount in 6 Months

Businesses cut back on their orders for heavy machinery, computers, autos and airplanes in April, reducing demand for long-lasting manufactured goods by the largest amount in six months.

Orders for durable goods fell 3.8 percent, the Commerce Department reported Wednesday. And an important category that is an indication of business investment — orders for nonmilitary capital goods excluding aircraft — was down 2.8 percent.

The weakness was widespread across a number of industries and was probably influenced by supply chain disruptions stemming from the Japanese earthquake in March. Demand for motor vehicles and parts, an industry heavily dependent on Japanese component parts, saw a decline in orders of 4.4 percent in April, the biggest drop since last August.

Jennifer Lee, senior economist at BMO Capital Markets, said the April durable goods report was just another sign that ”the U.S. economy is encountering its fair share of speed bumps” at the moment.