Orders of durable goods have fallen in the past month, which is being attributed to weaker customer demand, between other things. As customers are buying fewer items, businesses order durable gods from manufacturers, or products that should last a few years like computers or appliances. The transportation industry, though, was not affected, as you will find nevertheless orders for new planes and automobiles. Article resource - Demand shrinking among businesses as durable goods prices rise by MoneyBlogNewz.
Fewer people wanting manufactured products do not hurt transportation
Transportation has been doing really good, reports AOL News. This is during a time where there has been a huge decrease in the amount of durable goods being ordered. Orders for automobiles and trucks rose by 1.9 percent during February. There has been an increase in commercial aircraft orders too. It was a 26.7 percent increase. Congress is not worried about getting new defense aircraft so those order dropped 18.4 percent. Orders for all durable products, excluding transportation, fell 0.6 percent during February, marking the fourth month of declining durable products orders in the past five.
Paying more
The increase in gas means it costs more to drive consumer goods, states CNN. Also, the rising oil and gas costs mean a rise in energy costs. Smuckers and Kraft, parent companies, raised costs for Folgers and Maxwell House coffee. Customer costs for essential goods have been slowly but steadily increasing, and increased energy costs ensure that trend will continue. consumers are anticipated to stop purchasing non-essential goods when food prices go up a lot.
Gas prices continue to increase
The gas prices are going up a lot. This isn’t as the supply is running out. Retailers are likely to have to deal with the increasing costs anyway, states MSNBC. consumers may have to pay for it also. The price of goods could be going up because transportation costs are rising. This is because the price of getting the products there is going up. Prices are going up while companies are not getting durable goods anymore. consumers will have to pay more for items because of this. Producers can charge more for a gallon of gas or coffee or a loaf of bread because those are items that people will always buy. However, because demand is staying low for non-essentials, according to CNBC, people can still score a cheap iPad if they can afford to part with the cash.
Information from
Daily Finance
dailyfinance.com/article/durable-goods-orders-fall-09-percent-in/785798/
CNN
money.cnn.com/2011/03/18/news/economy/rising_prices/index.htm
CNBC
cnbc.com/id/42248040
MSNBC
msnbc.msn.com/id/42197087/ns/business-consumer_news/
