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"The continued weakness of investment goods demand suggests that 'rebalancing' remains firmly in the rhetoric as opposed to reality column".
"This amounts to an indication of continuing business confidence at least into May, since a confidence breakdown would surely hit capital goods demand quickly," said Pierre Ellis of Decision Economics.
Incidentally, it was only on holiday that I thought of a line that should have gone into my last column on this issue -For conventional goods, demand sets the price.
Rich-country exports are typically of expensive, complicated goods, demand for which is highly elastic for example German heavy machinery or Japanese cars (exports of the latter fell by 15% in October).What of the export prospects of countries that make the cheap clothes and other necessities that people keep buying even in lean times?
If other people are making a fortune by buying tech stocks, or by trading up in the housing market, then there is a huge temptation to take part, in case one gets left behind.This herd mentality means that financial assets are not like other goods; demand tends to increase when they rise in price.
"The February report on durable goods demand is the latest in a recent series of data releases which suggest that the recession-battered U.S. economy may be close to, or at, a business cycle bottom," Cliff Waldman, economist for the Manufacturers Alliance, wrote in a note.
Similar(48)
Now it is showing a flair for manufacturing, particularly in goods demanding high-skill production and superlow prices.
The airspace system is becoming increasingly congested as the number of aircraft operations grows to meet passenger and goods demands.
This happens because the merger increases its single component prices to benefit its bundle demand, in detriment of mix-and-match composite goods demands.
In addition, partial equilibrium analysis is incorporated within an IO framework to establish the link between changes of relative prices and quantities of goods demanded.
The agrarian activities were responsible of generating the surpluses to foster industry and finance the imports of inputs and capital goods demanded by the expanding manufacturing sector.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com