More bad news for the economy

Orders for durable goods sank 2.8% in February. This is really bad news for the economy.

But what is even worse is orders for capital investments remain weak (see above chart). 

You see these patterns during recessions. The economy cannot grow without strong investment in productive capacity. Productivity is hurting. 

Our leaders should worry about these trends. They are a sign business is uneasy about the future. 

Of course, a slow growing economy will depress prices of commodities, hurt profits, and keep yields from rising.

The business cycle is alive and well.

You will encourage my timely update of this blog on the economy and financial markets by entering a subscription to The Peter Dag Portfolio.

Thank you for visiting this site.

George Dagnino, PhD
The Peter Dag Portfolio
Since 1977 
Author, Profiting in Bull and Bear Markets

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