US economy figures look bad for Obama re-election prospects

Less than six weeks away from polling day, yesterday's US economic news was hardly what Barack Obama would have wished for. The growth figures for the second quarter were revised down and there was a 13.2% slump in orders for durable goods in August, normally seen as a good indicator or how well America's businesses are faring. The numbers were better than they looked. A drought unprecedented in its severity for half a century hit farm inventories in the three months to June, while the durable goods numbers are notoriously erratic. Boeing received only one order for a commercial aircraft in August having had 260 orders in July. There was also a big fall in orders for the defence industry. So, for Obama the good news is that if you dig deep into the numbers there is no need to panic. The bad news is that voters may take the figures at face value, and they look bad.