Long Term Perspective
New orders for durable goods reveal demand for consumer goods such as cars and home appliances as well as investment equipment such as lathes and computers. Notice that the sharp demand for information technology in the late 1990s pointedly reversed direction in 2000. Another reversal occurred in late 2001 as new orders hit bottom. Incidentally, the Census Bureau stopped publishing data on semiconductors in the durable goods and factory orders reports. Thus, information technology is missing a component that used to be included. According to the Census Bureau, chipmakers no longer were willing to contribute to this voluntary survey.

Short Term Perspective
Total durable goods orders (excluding semiconductors) fell 8.2 percent in October, reversing the 8.7 percent surge in September. Aircraft orders were up sharply in October and returned to prior levels in September. Aircraft orders have been strong overall in 2005 and 2006 and have helped manufacturing substantially. Orders for high tech goods haven't performed strongly in 2006. These orders dropped 11.3 percent in October, following a 1.8 percent increase the prior month.