Factory Orders Drop Most Since Jan; Inventories Surge Most Since Oct 2011

Tyler Durden's picture




 

The post-weather rebound is over. Factory Orders, which were expected to fall modestly, dropped 0.5% - the biggest drop and biggest miss since January. Notably defense-spending dropped 30% as it seems we didn't need 10 new submarines in May (and this is with Ex-Im bank still funding growth). On the flip side, if you were wondering where the recent data (survey) exuberance has come from, wonder no more - inventories in May rose 0.8% - the biggest rise since Oct 2011. More malinvestment-driven exuberance - if only wages were up? Surely subprime credit is soaring so that will take care of it.

Factory Orders have stalled the recovery falling back to January contraction levels.

 

But this is apparently good news for GDP: inventories have surged by the most since October of 2011.

 

Need moar inventories... forget the orders..

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Wed, 07/02/2014 - 10:10 | 4917565 AccreditedEYE
AccreditedEYE's picture

Maybe VIX will hit a 9 handle today

Wed, 07/02/2014 - 10:13 | 4917578 Aknownymouse
Aknownymouse's picture

Big inventory of sticks for the new gpro cameras.

Wed, 07/02/2014 - 10:24 | 4917621 GolfHatesMe
GolfHatesMe's picture

Obviously Shipping doors frozen shut from the winter causing the inventory build

Wed, 07/02/2014 - 10:34 | 4917658 Headbanger
Headbanger's picture

Great!  Maybe inventories of 22 LR will start surging finally!

Wed, 07/02/2014 - 10:39 | 4917673 NoDebt
NoDebt's picture

Bah!  Details, details, Tyler.  Just go with the headline number and call it good.

If the headline number is bad (like -2.9% GDP) just ignore the whole thing completely.

Headbanger- don't get your hopes up on 22LR.  Still rare as hen's teeth around me and they're telling me it's not gonna get better any time soon.  HOWEVER, you might try this site to locate some (I've used it myself):

www.gunbot.net

Wed, 07/02/2014 - 10:25 | 4917630 kliguy38
kliguy38's picture

The CNBC shills are becoming increasingly desperate in their attempts to cheer the "recovery' to the point where its a virtual pathetic comedy act.

Wed, 07/02/2014 - 11:44 | 4917908 midtowng
midtowng's picture

more inventory is a plus for GDP

Wed, 07/02/2014 - 10:11 | 4917568 ParkAveFlasher
ParkAveFlasher's picture

I just can't go house shopping in this damn heat!

Wed, 07/02/2014 - 10:12 | 4917569 orangegeek
orangegeek's picture

economic surveys and statistics are funny

 

it takes the cars and places them in the farmers' fields in Nebraska

Wed, 07/02/2014 - 10:13 | 4917570 valley chick
valley chick's picture

Or is the inventories just shit they could not sell?

Wed, 07/02/2014 - 10:17 | 4917596 ParkAveFlasher
ParkAveFlasher's picture

I just can't go car shopping in this damn heat!

Wed, 07/02/2014 - 10:18 | 4917600 Sudden Debt
Sudden Debt's picture

maybe order a Tesla online?

Wed, 07/02/2014 - 10:19 | 4917603 ParkAveFlasher
ParkAveFlasher's picture

Too damn hot to go online!

Wed, 07/02/2014 - 10:26 | 4917633 valley chick
valley chick's picture

Hope they are drowning in inventory as it will make for one awesome sale in canning supplies! Look out as this lady will shop!

Wed, 07/02/2014 - 10:47 | 4917692 CheapBastard
CheapBastard's picture

Unpossible to Flip Houses in this heat. Too damn hot! How do they expect me to become a millionaire Flipper in this heat?!

Wed, 07/02/2014 - 10:15 | 4917588 replaceme
replaceme's picture

If only this heat would subside, if only there were a way to stay at home and shop for goods and service, some way to buy without going out into this oppressive Summer heat.  I wish I could somehow look for a new car, from the safety and comfort of my own home; I would buy if there were such a magic box that let me.   Ditto a new house, or even some kitchen gadgets.  Widgets.

Wed, 07/02/2014 - 10:16 | 4917589 Sudden Debt
Sudden Debt's picture

You know what they say...

IT WILL GET DOWNRIGHT FREAKAZOID BEFORE IT GETS PITCH BLACK!

Wed, 07/02/2014 - 10:15 | 4917592 RiskyBidness
RiskyBidness's picture

This is bullish!!  Channel stuffing is the new norm.  BTFD!!  hahahahahahaha......Long live Yellen the queen!!

Wed, 07/02/2014 - 10:17 | 4917599 Sudden Debt
Sudden Debt's picture

First the economy goes down the shitters because of some snow...

than the economy crashes because America loses against Belgium during the WK....

WHAT'S NEXT?????

Wed, 07/02/2014 - 10:24 | 4917617 Smegley Wanxalot
Smegley Wanxalot's picture

Guess all those ADP jobs added were to help shut down the remaining manufacturing plants.

Wed, 07/02/2014 - 10:25 | 4917627 ParkAveFlasher
ParkAveFlasher's picture

Is there a college degree in Undertaking?  Seems the only safe career nowadays.

Wed, 07/02/2014 - 13:13 | 4918276 Zoltanne
Zoltanne's picture

But it's a dead-end job...

Wed, 07/02/2014 - 10:24 | 4917624 Yen Cross
Yen Cross's picture

  Screw this, I'm going to work in the garden... I'll catch up on what the 'Keebler Elf ®' had to say later.

  After that I'm going to go and hug my bag of silver...

Wed, 07/02/2014 - 10:30 | 4917644 Neverstopprintingme
Neverstopprintingme's picture

Got weather?  No worries Aunt Janet will be brining out the trick or treat basket of monetary nonsense later this afternoon to explain why this was just one bad piece of candy.

Wed, 07/02/2014 - 10:32 | 4917648 Nevsky
Nevsky's picture

So what you are saying is that Q2 GDP of 4%, no 3.5% no 3%... etc, not happenning?

 

Global Dumbing is to blame.

Wed, 07/02/2014 - 10:34 | 4917653 NoWayJose
NoWayJose's picture

Drop in defense spending? Now we know why Obama is asking for money to arm the Syrian rebels.

Wed, 07/02/2014 - 10:33 | 4917656 Stonedog
Stonedog's picture

Did it snow a lot in May?

Wed, 07/02/2014 - 10:39 | 4917671 Headbanger
Headbanger's picture

Yes it did in the Southern Hemisphere!

So that's got to be the problem again.

It just won't stop snowing.

Wed, 07/02/2014 - 11:08 | 4917763 JailBanksters
JailBanksters's picture

So thier stock prices are UP then .....

Wed, 07/02/2014 - 11:17 | 4917797 Snoopy the Economist
Snoopy the Economist's picture

What companies are increasing inventories without orders? All the companies I know are decreasing inventories.

We all know there's auto channel stuffing - that turkey is ready to explode as well as auto subprime loans.

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