HEMPSTEAD, N.Y. (CBS.MW) -- The good news is that business spending on capital goods is rising sharply. The bad news is that it not only won't do much to create new jobs here in the United States -- it might even lead to more layoffs.
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The urge to splurge is continuing so far in the current quarter. Orders for durable goods rose a hefty 3.3 percent in October -- the most in a year. What's more, core capital goods orders, a good proxy for business investment plans, are now almost 13 percent above year-ago levels.
While this is benefiting some U.S. companies, mainly those in the primary metals, electronics and transportation industries, it's more of a help to firms based overseas.
This is because most of the equipment that U.S. companies buy these days -- especially computers -- is built, at least in part, offshore.
Another point to ponder: this new equipment is being purchased in order for companies to be more productive. And while increased productivity helps the corporate bottom line, it usually reduces the need for workers.
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http://cbs.marketwatch.com/news/story.asp?guid=%7B2B03CEA9%2DA863%2D4DE6%2DBAF8%2D50C083017AC3%7D&siteid=mktwLooks like the jobless recovery is only for the corporate bottom line, but I don't think it's going to save that either. Just keep hammering Bush on jobs and get people out to vote. No president other than Hoover has had a negative job growth.