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US Factory Order Beat Thanks To Defense Orders; Decline Ex-Defense
Factory Orders beast expectations with a 0.7% rise (against expectations of a 0.5% rise) but this marks the 2nd month in a row after the February spike bounce back that growth has slowed and in fact shows the post-weather-slump recovery is anything but being sustained. Ex-defense, new orders for April actually fell 0.1% (after rising 1.1% in March)... simply put, the entire beat was driven by defense (does that sound sustainable? or like organic growth?) Non-defense factory orders were the weakest since January (in the middle of the catastrophic weather). Also, in the aftermath of yesterday's ISM fiasco, we wonder if the Dept of Commerce is sure it used the right seasonal adjustment: unadjusted factory orders tumbled 4.3% in April.
Where did the "beat" come from? Defense orders. Manufacturer orders ex-defense declined 0.1% from the April print (and -6.0% unadjusted). Here are the worst factory orders (ex-defense) since January
And the monthly and annual change:
Chart: Bloomberg
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Wait for it. Wait for it! And.... REVISION!
Oh, er...uh, erase that +0.7%...what was really accounted for stands out at +1.2%
Since when is much of anything in that sector related to “Defense” anymore?
It’s pretty obvious we are on the offense.
Plural ,'cause one revision just isn't enough to cover the stench of death anymore.
any do overs on this one? anyone know? Bueller? anyone? anyone?
How do we export anything we make in the USA again?
Just press in the launch codes and it only takes 2 to turn the keys
Bamm... PM's just got hit...
I think it's funny that we refer to spending on the most offensively used military in the world as 'defense spending'.
Well... the "Department of Defense" should really be called the "Department of Forward Deployment"
Just use the original, accurate name:
US Department of War
War
MOAR!!!
"defense"? Right.... AFAIK, neither Canada nor Mexico are attacking the US.
and the "defense" MRAP-toys are being dumped in middle amrka, with a backstory of "excess". . .
takes "army surplus" stores to a whole new level.
One can always find an excuse for disregarding the data.
One can always disregard the "data". No excuse is necessary. Just consider the source.
Hooray for seasonal adjustments!
Wow...ugly numbers without the government ordering new toys. Moar woar!
War, huh - what is it good for? .6%, say it again.
Manufacturing = 9% of GDP Health care = 16% of GDP. Nothing else needs to be said.
As long as you can print money, defense spending IS sustainable. And given the preparation Obama needs before he starts WWIII, our military is going to need lots of ammo and supplies.
All US residents, repeat after me!
I pledge allegiance
To the Flag
Of the United Socialist States of America
And to the government, for which it stands
One nation
Under Corporate America
Indivisible
With nuclear submarine contracts
And crony clean energy deals
For the neo-con military oligarch complex and progressive leftist communists, respectively
Obama is finally bringing us the Peace Dividend. Bullish on peace bombs.
No problem
Janet's got a new hungry baby in the waiting
Report calls for huge investment in energyThe International Energy Agency said $40 trillion would be needed through 2025.
Well, "war spending" IS the time-tested "fix" for a moribund economy, is it not?
TPTB have been trying desperately to get us on some kind of war-footing for awhile now. So you can probably count on more "defense spending" going forward. At least enough to skew the numbers into something resembling positive territory.
We need to spend $1 Trillion on defense each year because the last time foreign troops were on American soil was in 1812. It was England and her troops burned down the White House. We MUST make sure that they won't try it again, hence the need for $1 Trill/year...Hell, let's double-down and spend $2 Trill/year just to be on the safe side...