Here’s another example of the economy moving in the wrong direction. Factory orders fell in May, as they did in April and march:
Orders to U.S. factories fell in May by the largest amount in three months, while a key category that signals business investment plans dropped for a second month.
Factory orders declined 1 percent in May from April, when orders retreated 0.7 percent, the Commerce Department reported Thursday. Orders in a category that serves as a proxy for business investment were down 0.4 percent.
Much of the weakness in May reflected a big 35.3 percent fall in demand for commercial aircraft. But even outside of the volatile transportation category, orders were up only a tiny 0.1 percent. The lackluster showing suggests that manufacturing is still struggling with challenges such as lower energy prices and a strong dollar, which dampens exports.
Durable goods, items expected to last at least three years, dropped 2.2 percent in May, even weaker than a preliminary report last week that had estimated a 1.8 percent drop. Orders for nondurable goods edged up a slight 0.2 percent.
This economy needs more business investment, not less. You’re not going to get that by increasing taxes, raising the minimum wage, or raising the income threshold for mandatory overtime pay.
