….despite near silence from the news media, and trashing by the Democrats.
Sales of new homes perked up, while factory orders took off in July, raising hopes that the economy can safely weather financial turmoil that has shaken Wall Street.
The Commerce Department reported Friday that new-home sales rose 2.8 percent in July, after falling 4 percent in June. The increase in July lifted sales to a seasonally adjusted annual rate of 870,000 units. A second report showed that orders to factories for big-ticket goods jumped 5.9 percent in July, the most in 10 months.
Both reports were better than analysts had expected. They were forecasting home sales to fall and were calling for a much smaller, 1 percent gain in factory orders.
In the manufacturing report, the 5.9 percent increases in new orders for “durable” goods followed a 1.9 percent rise in June. Durable goods are costly manufactured items expected to last at least three years.
Gains were widespread. Orders went up for machinery, automobiles, metal products, airplanes and communications equipment. That blunted a drop in demand for computers, as well as electrical equipment and appliances.
The pickup in demand for manufactured goods comes against a backdrop of a growing global economy, which has produced a bigger appetite for some U.S. exports.
I believe Larry Kudlow has called this the “Chicken Little Economy” — the economic fundamentals are fine…. but everyone is running around hoping looking to have the sky fall in on it.
Hmmmm….. maybe the Democrat Party should change their mascot from an ass to a chicken? Naaaaah.