Durable Goods Orders Crash Most In 2 Years - Longest Non-Recessionary Streak Of Declines In US History

Tyler Durden's picture

Despite the longest winning streak for US macro data in US history, Durable Goods Orders collapsed in June. The 4% MoM plunge (vs -1.4% exp) is the biggest drop since Aug 2014. This represents a 6.6% YoY crash - the biggest drop since July 2015.

The drop appears driven by  plunge in airplane orders (non-defense aircraft and parts). Which should not be surprise:

Airbus Group SE and Boeing Co. racked up their lowest tally of aircraft orders in six years at the aviation industry’s annual showcase, as a slowing global economy and concern about the impact of Britain’s decision to quit the European Union curbed demand.

Core Capex continues to slide...


Does this look like a "non-doom-and-gloom" economy?


Worse still, core durable goods orders extended their annual declines to 18 months straight - the longest non-recessionary streak of declines in US history.


"It's probably nothing"

Charts: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Bilderberg Member's picture

A reason not to raise rates today...Just in time!....Shocking?.....No,rigged.

MFL8240's picture

The money printing will allow us to forgo the recession and move right to a depression when this group of trash gets the result they want from this election!

dimwitted economist's picture

We can't have a recession in an Election year...

the last time that happened was 8 years ago...

we got obama...

Now we're in a Strong Recovery!!!!!!

brada1013567's picture

New ATH!!!!!!!!!


Vote Shrilary!

SomethingSomethingDarkSide's picture

Apple earnings falling 30% and DB 98% makes me tingly all over!  BUYYY

TradingIsLifeBrah's picture
TradingIsLifeBrah (not verified) Jul 27, 2016 7:46 AM

Year over year change...

ChronixSnart's picture
ChronixSnart (not verified) TradingIsLifeBrah Jul 27, 2016 8:05 AM

You down wif ODG?



****scratchy noizez*****

philipat's picture

It doesn't matter, we are a "service economy". SO come on Mr Yellen, at least a 50 bps rise because everything is awesome...

ChronixSnart's picture
ChronixSnart (not verified) Jul 27, 2016 7:52 AM


hrhong's picture

who cares about the numbers? markets go up regardless!!


Dead Canary's picture

I have faith Yellen has the courage to print.

SillySalesmanQuestion's picture

I wonder which economics dunce cap Ms. Debtfire will wear today...?

ChronixSnart's picture
ChronixSnart (not verified) SillySalesmanQuestion Jul 27, 2016 8:23 AM

'Yarmulke Economics' is not stupid, since the goal is to destroy America...It seems to be working just fine.

chindit13's picture

Come on, Tyler!  Get with the program.  Stop being a citizen of the Luddite Economy.  The world has changed.  Today, REAL WEALTH is all about creating new platforms for advertising and data collection.  Yesterday's Henry Ford is today's Mark Zuckerberg, Andrew Carnegie is Jack Dorsey.  Fedoras have been replaced by hipster beards, the bespoke suit by a black turtleneck, and you're nobody unless you can claim some sort of minority victim status.

Didn't you see that none other than the Aristophanes of our times, Michael Moore, pronounced the end of the world of angry old white guys?

REAL productivity in our diversified world is getting millions of adults of all shapes, sizes, colors and creeds, sexual preferences and gender identities, to walk into ditches or get smutched by a bus while searching for Pokemons!  Live a life worthy of the name and join them in the bathroom of your choice!

You either get it, or you never will.

Bemused Observer's picture

"smutched by a bus"...I like it. Some people get upset when folks 'make up' new words. I prefer to think of it as 'creating' new words.

A few years ago, I created 'shlabatzel' to describe any kind of small debris generated by commonplace human activities, such as eating..."You've got some shlabatzel on your lip there..."

It sounds kind of Yiddish though...is 'shlabatzel' even a word in Yiddish? Sounds like it could be, or should be.

Schlabatzel...remember you heard it here first...

Infield_Fly's picture
Infield_Fly (not verified) Jul 27, 2016 8:12 AM

We  all know we are in a deflationary recession/depression.


When the BOE, SNB, Fed, PBOC, ECB, BOJ keep markets and certain commodities bid (meats, energies, gold, but not platinum) and the MSM big fat fucking goobmint are complicit in creating this false narrative, we get these FULL RETARD outcomes.


The best way to fuck all of the above good and hard is to stop spending, except on essentials.  No more restaurants.  No more clothes.  No more cars.  No more trips.  No more home renovations.  Use what you have.


This will drive inventories even higher and put even more deflationary pressure into these laps of these fucks.


foxmuldar's picture

Bad news is good news for the market. Buy! Buy! Buy!

heisenberg991's picture

I bought whey protein some muscle growth enhancer from amazon on prime day, what more do they want.

Phillyguy's picture

It is not surprising that durable goods orders are weak. The US economy is confronted with severe structural problems- slack demand from consumers, a consequence of a lousy job market (>90% of “new” jobs are temp positions, read low pay, no benefits and no job security), increasing costs of rent, health care and skyrocketing deficits. These problems are a direct consequence of government/corporate policies over the last 3 decades- multiple tax cuts for the wealthy, job outsourcing, financial deregulation, taxpayer funded $ multi-trillion wars and bank bailouts. The result of all this has been the biggest financial disaster since the Great Depression. The increasing dysfunctionality of the American economy was recently pointed out by David Stockman. Since the 2008 financial crash, there been an “orgy of corporate borrowing” with much of these funds recycled into the secondary market for existing assets via “financial engineering” made possible by ultra-cheap money supplied by the US FED. To put this in perspective, since 2010, US companies have spent circa $6 trillion on stock buybacks and cash M&A deals. (See: The Fed’s Third Mandate and the Destruction Of Honest Finance by David Stockman Jun 23, 2016; Link: davidstockmanscontracorner.com/the-feds-third-mandate-and-the-destruction-of-honest-finance). Clearly this is not the behavior of a healthy financial system.

Mayer Amschel Rothschild's picture

North American automotive supplier orders have dropped appreciably in the last two months.  Both receivables and payables have slowed to a trickle at where I work.

roadhazard's picture

You mean cars have stopped breaking down.

Iam_Silverman's picture

"North American automotive supplier orders have dropped appreciably in the last two months."

Does this imply that all channels are already stuffed to the gills?  Does not bode well if so.

I have noticed the air of desperation in the new car ads seen on TV lately, up to $10K or more off on their most popular selling vehicles.

Consuelo's picture



 There's that peculiar 'rise' that seems to always appear on charts that go back to the early 1970's...    This time, on the 'Capital Goods Non-Defense Orders' chart.

The steady upward climb - that seems to cut across many (if not all) data series going back to that period.   What in the world happened back then...?