Durable Goods Devastation: Capital Goods Orders Crash To Fresh Crisis Lows, Scream Recession

Tyler Durden's picture

Durable Goods Orders crashed 5.1% MoM, far below the worst Wall Street forecast...

... and turned back negative YoY as both sets including and ex-transports continues to deteriorate, flashing that a recessionary environment is already upon us (if not an actual recession).

However, it is in the core - non-defense ex-aircraaft - segment that we see the real bloodbath as shipments plunged and new orders collapsed 7.5% YoY - another "worst since Lehman" moment. Of course we still have bartenders and waitresses to maintain the US economy so this is just transitory weakness in the stock market's most-dependent segment of the economy.

Headline data turned back red YoY.

 

Ex-Transports remains in recessionary negative territory.

 

Actual shipments of core capex tumbled along with everything else:

 

And finally the real carnage - capital goods orders are collapsing at the fastest rate since... Lehman. Note that the US economy has never seen a decline like this in recent history without it being in recession, or just ahead of one.

 

Of course - this is all nothing that a good rate hike won't fix, with all its confidence-inspiring sentiment.