MAPI Economist analyzes durable goods report.

Press Release Summary:



Cliff Waldman, Economist for the Manufacturers Alliance/MAPI, said "While the January durable goods report shows that overall orders began 2008 on a weak note, recent months reveal that capital spending behavior is mixed and is surprisingly stable given the mounting challenges to U.S. economic growth....The current manufacturing decline should be cushioned by a relatively strong global economic climate and business investment that has yet to show the weakness seen in the 2000-2003 period."



Original Press Release:



MAPI Analysis on Durable Goods: Manufacturing Orders Begin on Weak Note but Capital Spending Surprisingly Stable



The following is an analysis from Cliff Waldman, Economist for the Manufacturers Alliance/MAPI, regarding the durable goods report for January 2008:

"While the January durable goods report shows that overall orders began 2008 on a weak note, recent months reveal that capital spending behavior is mixed and is surprisingly stable given the mounting challenges to U.S. economic growth," said Waldman. "New orders for non-defense capital goods excluding aircraft, a proxy for business equipment spending, fell by 1.4 percent in January, only partially backtracking from the 5.2 percent surge seen in December. While key industries such as primary metals and computers showed weakness, the current manufacturing decline should be cushioned by a relatively strong global economic climate and business investment that, while weak, has yet to demonstrate the significant and protracted contraction seen in the 2000-2003 period."

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