{"id":3647,"date":"2012-02-28T17:40:00","date_gmt":"2012-02-28T22:40:00","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=3647"},"modified":"2012-02-28T17:40:00","modified_gmt":"2012-02-28T22:40:00","slug":"equipment-demand-hasnt-dropped-out-just-taking-a-breather-real-time-economics-wsj","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/28\/equipment-demand-hasnt-dropped-out-just-taking-a-breather-real-time-economics-wsj\/","title":{"rendered":"Equipment Demand Hasn\u2019t Dropped Out, Just Taking a Breather &#8211; WSJ"},"content":{"rendered":"<p>New orders for durable goods fell 4.0% in January. And bookings for nondefense capital goods excluding aircraft \u2014 a measure of future business spending on equipment \u2014 dropped 4.5%. Although the declines were larger than expected, they shouldn\u2019t raise alarm bells. That\u2019s because much of the weakness traces to special factors.<\/p>\n<p>The first is the end of a tax credit that allowed 100% deduction for equipment bought last year. Not surprisingly, businesses front-loaded their purchases early in 2011.<\/p>\n<p>The second reason is a quirk in the very volatile orders series: New bookings tend to fall in the first month of a quarter, then rebound in the second or third months. The pattern is especially acute in the first quarter.<\/p>\n<p>via <a href=\"http:\/\/blogs.wsj.com\/economics\/2012\/02\/28\/equipment-demand-hasnt-dropped-out-just-taking-a-breather\/\">Equipment Demand Hasn\u2019t Dropped Out, Just Taking a Breather &#8211; Real Time Economics &#8211; WSJ<\/a>.<\/p>\n<p>Comment:~ Accelerated tax write-offs stimulate new capital investment by the private sector, as companies bring forward or initiate expenditure in order to take advantage of the tax deduction. But there is bound to be a (partial) offset when the accelerated write-offs are removed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New orders for durable goods fell 4.0% in January. And bookings for nondefense capital goods excluding aircraft \u2014 a measure of future business spending on equipment \u2014 dropped 4.5%. Although the declines were larger than expected, they shouldn\u2019t raise alarm bells. That\u2019s because much of the weakness traces to special factors. The first is the &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/02\/28\/equipment-demand-hasnt-dropped-out-just-taking-a-breather-real-time-economics-wsj\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Equipment Demand Hasn\u2019t Dropped Out, Just Taking a Breather &#8211; WSJ&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,34],"tags":[72,115,1146],"class_list":["post-3647","post","type-post","status-publish","format-standard","hentry","category-economy","category-us-canada-countries-regions","tag-100-tax-deduction","tag-accelerated-tax-write-offs","tag-durable-goods-orders"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Equipment Demand Hasn\u2019t Dropped Out, Just Taking a Breather - WSJ - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Equipment Demand Hasn\u2019t Dropped Out, Just Taking a Breather - WSJ - the patient investor\" \/>\n<meta property=\"og:description\" content=\"New orders for durable goods fell 4.0% in January. And bookings for nondefense capital goods excluding aircraft \u2014 a measure of future business spending on equipment \u2014 dropped 4.5%. Although the declines were larger than expected, they shouldn\u2019t raise alarm bells. That\u2019s because much of the weakness traces to special factors. 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The weakness extended to a host of categories, including machinery, computers and primary metals. Economists cautioned that special factors likely made the report appear somewhat worse than the underlying trend. First, the\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":61851,"url":"https:\/\/thepatientinvestor.com\/index.php\/2025\/05\/28\/signal-to-noise\/","url_meta":{"origin":3647,"position":1},"title":"Signal vs Noise","author":"Colin Twiggs","date":"May 28, 2025","format":false,"excerpt":"Summary The signal-to-noise ratio is exceedingly high, with market volatility obscuring the underlying trend. Ignore the background noise of Trump policy flip-flops and focus on the effect of rising fiscal debt and long-term interest rates. The S&P 500 is consolidating below 6000, a bullish sign. A breakout above 6100 would\u2026","rel":"","context":"In &quot;US &amp; Canada&quot;","block_context":{"text":"US &amp; Canada","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/us-canada-countries-regions\/"},"img":{"alt_text":"S&P 500","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-05-27-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-05-27-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-05-27-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":14917,"url":"https:\/\/thepatientinvestor.com\/index.php\/2017\/03\/03\/us-why-the-enthusiasm\/","url_meta":{"origin":3647,"position":2},"title":"US: Why the enthusiasm?","author":"ColinTwiggs","date":"March 3, 2017","format":false,"excerpt":"Retail sales are surging, with Retail & Food (ex-Motor Vehicles) growing above 5% a year for the first time since 2012. Light vehicles sales are back at their 2000-2006 norm of 17.5 million units a year, reflecting consumer confidence. Housing remains soft but growth in new starts and building permits\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":20726,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/06\/12\/australia-further-stimulus-needed\/","url_meta":{"origin":3647,"position":3},"title":"Australia: Further stimulus needed","author":"Colin Twiggs","date":"June 12, 2020","format":false,"excerpt":"NAB's May business survey gives an insight into how the economy is faring: \"By industry, the largest impact has been on the recreational & personal services industry where almost 60% of respondents have seen a major negative impact. Around a third of respondents in construction, retail, finance, business & property\u2026","rel":"","context":"In &quot;Australia &amp; NZ&quot;","block_context":{"text":"Australia &amp; NZ","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/australia-nz-countries-regions\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":28594,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/10\/29\/slowing-gdp-growth\/","url_meta":{"origin":3647,"position":4},"title":"Slowing GDP growth","author":"Colin Twiggs","date":"October 29, 2021","format":false,"excerpt":"Real GDP growth slowed to 0.5% in the third quarter, or 2% annualized. Not a lot to get excited about. Retail Sales (excluding motor vehicles and parts) are up roughly $80 billion per month, or $1 trillion annualized, compared to pre-pandemic levels of $420 billion per month. But the entire\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":19004,"url":"https:\/\/thepatientinvestor.com\/index.php\/2019\/09\/28\/fedex-breaks-support\/","url_meta":{"origin":3647,"position":5},"title":"Fedex breaks support","author":"Colin Twiggs","date":"September 28, 2019","format":false,"excerpt":"Bellwether transport stock Fedex (FDX) broke long-term support at 150, warning of a decline with a long-term target of 100. A down-trend on Fedex has bearish implications for the broader economy, signaling that activity is declining. We have been here before: November 2007 - Fedex Warns of Worse to Come.\u2026","rel":"","context":"In &quot;Stock Markets&quot;","block_context":{"text":"Stock Markets","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/stock-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/3647","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=3647"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/3647\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=3647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=3647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=3647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}