Tuesday, January 27, 2015

Yellow Flags Flying on Economy

We mentioned, a week or so ago, that copper prices were heading downward.  Ticker noticed a few other signals.

New orders for manufactured durable goods in December decreased $8.1 billion or 3.4 percent to $230.5 billion, the U.S. Census Bureau announced today. This decrease, down four of the last five months, followed a 2.1 percent November decrease. Excluding transportation, new orders decreased 0.8 percent. Excluding defense, new orders decreased 3.2 percent.

Transportation equipment, also down four of the last five months, led the decrease, $6.8 billion or 9.2 percent to $66.7 billion

He also mentions a 3-month downturn in computer orders and a 90-day downturn in machinery orders AND shipments.  You can ask Deere employees about that--or those at Rexnord's Falk operations.

And since Obozo has been actively destroying the economy for the last 6 years, the 'recovery' has been far less than robust, which begs a bit of speculation:  just how bad will the next downturn be?

Stay tuned.

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