Not a surprise

[CARLHAYDEN]

US Factory Orders Post Surprise Fall in April

Published: Monday, 4 Jun 2012

By: Reuters
            
New orders for U.S. factory goods fell in April for the third time in four months as demand slipped for everything from cars and machinery to computers, the latest worrisome sign for the economic recovery.

http://www.cnbc.com/id/47674033

Since it’s the third time in four months it really shouldn’t be a “surprise.”  But then, having used up the term "unexpected," they are now using the term "surprise."

[Redalgo]

What do you figure is the drive behind this? I'm not at all savvy with economic questions but if I had to guess people are buying less to be more frugal / financially conservative and in doing so have lowered demand for many kinds of goods and services. In which case I suppose we have to decide whether to spend beyond our means, borrowing against the future to propel growth right now, or tighten our belts and accept that both consumer demand and the labor market (at least from the employment-seeker's perspective) are just going to have to suck for a few years? It would be really helpful if someone could explain to me why the news is still so often downbeat. D:

[tpfkaw]

It's because the dollar has strengthened vs. the euro and because we're likely seeing a double-dip recession.  There's declining nominal wealth as home prices fall even as inflation is rising (causing the real decline in wealth to progress even more rapidly), even as extremely high barriers to entry prevent new marketplace entrants from taking the place (and rehiring the workforce) of former established players who went bust or downsized during the crash.

[CARLHAYDEN]

It's because the dollar has strengthened vs. the euro and because we're likely seeing a double-dip recession.  There's declining nominal wealth as home prices fall even as inflation is rising (causing the real decline in wealth to progress even more rapidly), even as extremely high barriers to entry prevent new marketplace entrants from taking the place (and rehiring the workforce) of former established players who went bust or downsized during the crash.

Pretty good explanation.

Why the red Avatar?  Trying to fit in with the moderators here?

[opebo]

...extremely high barriers to entry

Which barriers?  The lack of demand?

[ag]

Why the red Avatar?  Trying to fit in with the moderators here?

On this board, I am the moderator, and I haven't been aware that I am a Dem. For the moment, I am letting this pass, but try not being ridiculous.