Menu
Share
Share this story
Close X
 
Switch to Desktop Site

Want proof that the recession ended last June?

(Read article summary)
View video

SoldAtTheTop / The Paper Economy

(Read caption) America is slowly but steadily buying its way out of the recession. Purchases of durable goods (blue line) are climbing mostly upwards (this month is very slightly below last month), and the high yellow line (comparisons to 12 months prior) shows the improvement since this time last year, when we'd barely begun to dig ourselves out of the recession, which officially ended when the blue curve showed itself on a steady upward climb.

View photo

Today’s Durable Goods Manufacturers’ Shipments, Inventories and Orders report indicated that total new orders increased 6.3% from August to $199.2 billion while excluding transportation new orders decreased 0.8% to $144.384 billion.

Stripping durable goods orders of defense orders AND non-defense aircraft orders yields an effective measure of orders coming as a direct result of typical discretionary consumer durable goods spending on items such as motor vehicles, furniture, consumer electronic devices and home appliances.

About these ads

Looking at the latest release, discretionary durable goods orders continues to slow declining 0.76% since August but still remaining 8.56% above the level seen in September 2009.

Though the trends in discretionary new orders still remain positive on the year, the recent slowing trend warrants tracking this measure closely in coming months.

Add/view comments on this post.

------------------------------

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link above.