MAPI provides analysis of durable goods report.
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Press Release Summary:
According to Cliff Waldman, Economist for Manufacturers Alliance/MAPI, bounce back in business equipment spending evidenced in March 2007 report is a function of the volatility inherent in the data rather than a clear sign that business confidence in economy has stabilized. Weather-related volatility aside, there is evidence that housing slump is worsening. While consumer spending has been supported by moderately strong job growth, continuation of sluggish GDP growth puts labor market at risk.
Original Press Release:
MAPI Analysis: Durable Goods Report Indicative of Data Volatility
The following is an analysis from Cliff Waldman, Economist for the Manufacturers Alliance/MAPI, regarding the durable goods report for March 2007:
The significant bounce back in business equipment spending evidenced in the (March 2007) durable goods report is more a function of the volatility inherent in these data than a clear sign that business confidence in the economy has stabilized enough to allow capital spending to resume a healthy growth trajectory after weakening considerably in the latter months of 2006, said Cliff Waldman, Economist for the Manufacturers Alliance/MAPI. The general economic outlook remains precarious. Weather-related volatility aside, there is mounting evidence that the housing slump is worsening. And while consumer spending has been supported by moderately strong job growth, the continuation of sluggish GDP growth puts the labor market at risk, as well.
Healthy export demand should allow for continued expansion in the factory sector, albeit at a subdued pace, he added. But the outlook for the domestic U.S. economy remains a considerable question mark.
