- Lynn Franco, director of economic indicators at the Conference Board
US orders for big-tickets goods such as heavy machinery or airplanes dropped in September for the second consecutive month. According to the Commerce Department, orders for long-lasting products declined 1.2% last month following a revised 3.0% decrease in August. At the same time non-defence capital goods orders excluding aircraft, a proxy for business investment, slid 0.3% after a 1.6% drop in August. American manufacturers have been struggling due to soaring US Dollar, which makes US goods more expensive overseas. Moreover, cheap oil has also sapped demand for heavy-duty goods used by domestic drillers and energy firms. Durable goods orders have been down in four of the past six months, pointing to problems facing manufacturers as they struggle with economic weakness in top export markets like China.
Separately, the Conference Board reported that consumer confidence dropped to 97.6 this month from a revised 102.6 in September. The board's Present Situation Index declined to 112.1 in October, from 120.3 in September. The share of consumers expecting more jobs in the months ahead fell to 14.5% from 14.9%, while the share of those expecting fewer jobs climbed by 1% to 16.9%.
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