Summary Box: Bumpy recovery expected as 2 economic reports come in lower than expected
By APFriday, September 25, 2009
Summary Box: Durable goods, homes data disappoint
DISAPPOINTING REPORTS: Orders for autos, appliances and other goods that are expected to last at least three years dropped 2.4 percent in August, defying economists’ estimates of a 0.5 percent gain. Sales of new homes inched up 0.7 percent, also less than forecast.
BUMPY RECOVERY AHEAD: The reports reflect the uneven nature of the recovery. Slow sales are restraining business investment. And consumers are reluctant to ramp up spending due to widespread job losses, slow income growth and tight credit.
STIMULUS UNWINDING: The volatility could worsen as some government stimulus efforts, such as a tax credit for first-time homebuyers and Federal Reserve support for the banking system, wind down.
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