Submarines Are Durable Goods

 

Durable Goods Orders

Durable Goods Orders

Orders for Durable Goods a measure the government tracks on the economy rose in April. Which is generally good news, the demand for goods of a certain type, like refrigerators is growing. However in April the government also ordered 10 Submarines, which is good news for General Dynamics and our brothers and sisters at Electric Boat. But hardly consumer good like refrigerators.

Take out the Submarines and Durable Goods decreased by 0.8%, not great news. But further drilling down shows this number is rather volatile, true meaning? A consumer driven economic recovery is not strong and not necessarily trending upwards.

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