Durable orders fuel doubt over recovery’s legs

ONLY a surge in orders for commercial aircraft kept durable goods orders in positive territory last month, casting yet further doubt over the resilience of the US recovery.

Durable goods orders only managed to grow by 0.3 per cent on the previous month but the more closely-watched core capital goods orders figure slumped eight per cent on June. Consequently, the three-month growth rate dropped to just 19.8 per cent from 30.9 per cent.

Paul Ashworth, senior US economist at Capital Economics, said: “July’s durable goods report adds to the recent evidence from numerous activity surveys that the manufacturing recovery has lost nearly all of the considerable momentum it had.”

He added: “The rebound in manufacturing was one of the bright spots in an otherwise disappointing recovery. Take it away, throw in a renewed collapse in housing, and you don’t have much left.”