In Obama's upcoming recession, the polls will not matter.
(Reuters) - Orders for long-lasting U.S. manufactured goods dropped sharply in August suggesting the main engine of economic growth was stalling, offsetting hopeful signs of an improvement in the labor market.
The Commerce Department said on Thursday durable goods orders dived 13.2 percent, the largest drop since January 2009, when the economy was in the throes of a recession. That primarily reflected weak aircraft and automobiles demand, although orders for a wide range of goods also fell.
Economists polled by Reuters had expected orders for durable goods -- items from toasters to aircraft that are meant to last at least three years -- to fall 5 percent.
The sharp drop underscored the weakness in the economy, whose growth pace in the second-quarter was cut down to a 1.3 percent annual pace from 1.7 percent, mainly because of a drought in the Midwest, and dimmed hopes of a pick-up in activity.
"It just shows the manufacturing side of the economy continues to labor here, and in fact, contract. Orders are so critical to what is ahead," said Tim Ghriskey, chief investment officer at Solaris Group in Bedford Hills, New York.
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