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October durable goods orders drop 3.3 percent

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Orders to U.S. factories for long-lasting manufactured goods plunged in October by the largest amount in 21 months, reflecting widespread weakness in a number of areas.

Orders for durable goods dropped 3.3 percent last month, the Commerce Department reported Wednesday. The setback was the sharpest decline since demand fell 8 percent in January 2009, a time when the economy was caught in the worst recession since the 1930s. Excluding transportation, which is often volatile, orders were down 2.7 percent, the biggest drop for this measure since March 2009.

The unexpectedly sharp declines raised questions about the strength of manufacturing, which has been one of the economy's standout performers.

It also caught analysts by surprise. It marked the second drop in the past three months. Orders were down 0.8 percent in August and then rose a revised 5 percent in September, a gain that reflected a huge jump in demand for commercial aircraft.

In the latest report, a 4.5-percent drop in orders for nondefense capital goods, excluding aircraft, was of special concern. This category is viewed as a good proxy for business investment plans. It was the biggest drop since a 5.3-percent fall in July.

The weakness in October was led by a big plunge in demand for military aircraft, which fell 25.1 percent. Orders for commercial aircraft, which had surged 112.6 percent in September, fell 4.4 percent last month. Demand for autos fell for a third month, dipping 0.7 percent.

Total orders in transportation were down 5.2 percent last month. The 2.7-percent fall in orders outside of transportation reflected weakness in a number of categories.

Orders for primary metals, such as steel, declined 0.8 percent, while demand for heavy machinery fell 3.9 percent.

Orders for computers and electronic products fell 7.7 percent as demand for communications equipment dropped by 12.3 percent, the largest amount in two years.

All of the weakness, if it is repeated in coming months, would raise doubts about the durability of the recovery in manufacturing. U.S. manufacturers have been benefiting from rising global demand, which has helped offset lagging sales in the United States.

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  1. First, the Athenaeum is going to have to get past the hurdle with the Lockerbie residents and the agreement that the parcel would be residential. Second, and in my opinion, this prime piece of property should include parking, PLUS, a black box theater(s), some market rate and affordable artist housing and a plan to renovate and reconfigure the second story theater. I would negotiate to add the DeHaan property surface parking lot into the development mix, place a one story surface parking garage on the DeHaan lot on the street level (for the Dehaan tenants use during the daytime) and add a second story to the garage that would become an addition to the current second story theater and then change the direction of the theater by moving the stage across the alley and on top of the DeHaan lot parking. You can add all the stage elements that are currently missing from the Athenaeum stage to make it more attractive for use by Ballet, Opera and traveling productions. Plus, the theater changes would probably help solve some of the soundproofing issues. Alas,it does not seem to be a part of the strategic plan to conduct a study to determine best use of the property. Seems like the current plan is a quick and easy move that ignores the property best use/potential and any strategic property planning for the effect on future generations.

  2. I recall that MSA's pilings are still in the ground and hard to remove. It’s not likely any proposal will include significant underground construction/parking because of this. Start adding 2 floors of retail, 8 floors of parking and 5-10 floors of possible hotel, and/or 10-20 floors of residential, and you are at 30 floors already with possible expansion of all the uses. But then again I could be wrong.

  3. Accoriding to their website there is no deadline to the Do Not Call list. What is this article referring to??

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