The economic numbers are still looking good...I think. As reported by the AP on MSNBC.com.
Orders to U.S. factories for manufactured goods rebounded in May after a big decline the previous month as strengthened demand for petroleum and chemicals offset weakness in commercial aircraft and autos.
But good economic news for one sector can be bad news for another.
Sometimes I think people can become myopic when looking at these types of numbers.
Overall economic growth raced ahead at a breakneck pace of 5.6 percent in the first three months of this year. But surging gasoline prices, rising interest rates and a cooling housing market are all weighing on the economy. Analysts believe economic growth slowed to about 2.5 percent to 3 percent in the just-completed April-June quarter and will remain at that pace in the second half of the year as consumers cut back on spending.
I kind of wish reporters wouldn't speculate so much. Is this a guarantee that consumers are going to cut back on spending? Any parent knows that the school season is approaching, and they can predict - quite accurately - that spending for school-related items will be quite vigorous this Fall!
“So far this year, nondurables orders have risen by a cumulative 3.8 percent over a five-month period, and excluding the petroleum category, which has provided a sizable boost, the advance has been a still-healthy 2.8 percent,” said Stephen Stanley, chief economist at RBS Greenwich Capital.
So keep your chiropractor's number handy. You just might need it if you keep watching the economic news.
Orders for primary metals such as steel rose by 4.6 percent in May while orders for machinery were up 2.5 percent. But orders for computers and other electronic products dropped by 2.5 percent.
See what I mean.
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