Durable Goods Orders Dropped 2.4 Percent in August

The Commerce Department announced on Friday that durable goods orders dropped 2.4 percent in August, well below expectation of a half a percent increase.

This was mainly attributed to a drop in orders for commercial aircraft and parts, which dropped 42.2 percent. Chicago based Boeing (BA) reported an 11 percent drop for August orders, and a 22 percent drop compared to orders in August 2008.

Weak results were also noted in the electronics and appliance sectors.

The data suggests that a recovery in manufacturing will be slow.

On positive note, however, auto and auto parts orders increased 0.4 percent, mainly lifted by the government's Cash for Clunkers program which boosted orders for the major automakers and is expected to give earnings results from companies such as Ford (F) and Toyota (TM) an increase this quarter.

The preceeding is a transcript of the MarketNewsVideo.com video published at: http://www.marketnewsvideo.com/?id=200909Durable092509&mv=1.

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Related terms: aircraft, auto parts, commercial, durable goods, earnings, manufacturing, note, video