You can see why investors are unsettled by the latest reading of durable goods orders, released by the U.S. Commerce Department on Wednesday morning. Orders rose 1 per cent in September, as expected by a consensus of economists, and marking a reversal from the sharp drop in durable goods orders the month before.
Sounds okay. But the reading caused Goldman Sachs economist Ed McKelvey to revise his previous estimate for economic growth during the third quarter - which will be released on Thursday. Mr. McKelvey now believes the U.S. economy will have expanded at just 2.7 per cent during the quarter, down from his 3 per cent forecast previously.
"The headline gain in orders was in line with expectations but not as firm as we had thought," he said.