Wednesday, May 28, 2014

"An Order for 10 Submarines Led to Misleading News on the Economy"

Good news: Orders for durable goods — motor vehicles, machinery, computers and other long-lasting items — rose in April, according to data released Tuesday by the Department of Commerce. Most economists expected a decline. 
But if we dig into the manufacturing sector data, we see that the U.S. government ordered 10 submarines from General Dynamics in April; that deal was worth nearly $18 billion.