The latest data regarding the economic growth rate of America came from the Commerce Department’s durable goods report, and the headline numbers weren’t good. The total orders for durable goods in the month of August fell 13%, primarily due to a massive drop in civilian aircraft.
This report, however, was not a surprise. While it may be a hit to investor confidence, the truth is that economic growth has been slowing and we’ve been aware of this from the numerous comments made by a large numbers of CEOs in interviews. The main concern is the “fiscal cliff.” The more people talk about the fiscal cliff and the more inaction by Congress, the less likely it is that businesses will expand. Would you increase your capital expenditures not knowing what will happen in just a few months? I certainly wouldn’t. This uncertainty is what’s really holding back jobs growth.
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