New economics data published Wednesday revealed U.S factories reported flat demand for durable goods in August. This suggests that the economy, while stable, struggles to grow due to weak spending.
According to the Commerce Department, demand for durable goods such as cars, tractors and refrigerators, which fall under the category of products that last longer than three years, was unchanged from July.
Stability can be seen as a negative, but it is a better result than what economists expected. The Wall Street Journal survey of Economists shows they expected demand to fall 1.5%.
The second quarter for demand of durable goods has been mixed. During the month of June orders of such goods showed a worrisome decline, yet in month of July nicely recovered.
Jim O’Sullivan, chief U.S. economist at High Frequency Economics, explained “All in all, the data remain consistent with a manufacturing sector that is weak, but not necessarily weakening.”