Demand for U.S. goods had a set-back as orders for its durable goods fell more than forecast in October with companies losing confidence in the possibility of economic expansion.
Federal Reserve Vice Chairman Donald Kohn today warned that turbulence may discourage businesses and consumers from spending.
Economists also added less investment adds to risks that growth will falter and force the central bank to cut interest rates again.
James O'Sullivan, a senior economist at UBS Securities LLC in Stamford, Connecticut, projected orders would drop 0.5 percent. We do expect growth to be weak for the next couple of quarters, he said.
The department of Commerce revealed on Wednesday that the demand for cars, planes and other items was down by 0.4 percent for years, with September this year posting further 1.4 percent decline noting that demand fell by 0.7 percent.
Economists forecast a 0.1 percent drop in orders after against 1.7 percent decline that was posted in September.