Signs of a slowdown in economic activity were evident with the drop in demand for long term durable goods and modest business spending. According to the Commerce Department, the amount of durable good orders fell 5.7 percent in March. The drop in demand for these goods, ranging from airplanes and washing machines to toasters, meant to last for more than three years came after a 4.3 percent increase in February.
We have seen a considerable loss of momentum in the economy and that has been obvious in the round of data we had over the last four weeks or so,” said Jacob Oubina, a senior U.S. economist at RBC Capital Markets in New York noted. Unbelievably, the drop was double the amount economists had thought/predicted and this indicated cooling off in production at factories that had played a central role in the economy’s recovery from the recession. Economists have began to dub this economic slowdown as the Spring Swoon and point out that the problem lies within Washington as the government tries to reduce their budget deficit.
Written by Kevin Zhang