Durable Goods Orders Beat Expectations

Orders for U.S. durable goods fell less than forecast in November, Bloomberg reports. Bookings for goods meant to last several years fell 1%, after an 8.4% drop in October that was more than previously estimated and the biggest decline in eight years, the Commerce Department said. Excluding transportation gear, orders in other segments unexpectedly rose.
Demand for computers, machinery and defense equipment rebounded last month, partly offsetting a slump in aircraft bookings. Despite the glimmer of hope, companies will likely keep paring spending as consumer bookings slow and international demand weakens in the face of the global credit crisis. Another Commerce report showed consumer spending adjusted for inflation rose 0.6% in November, the biggest increase in two years.
President Bush last month also said the government will extend $13.4 billion in emergency loans to General Motors Corp. and Chrysler LLC in exchange for the companies substantially restructuring their businesses. They have until March 31, 2009 to meet the requirements for the loan. ♦