Factory Orders Surged Most In 16 Months (Before The Election)

Tyler Durden's picture

Despite all the uncertainty, all the chaos, all the headlines, and all the media angst, Factory Orders in America surged by the most in 16 months in October ahead of the election.

Factory Orders rose 2.7% MoM (ahead of the 2.6% rise expected) led by am 11.9% spike in Capital Goods orders...


In case this seems odd to anyone, we remind them of what we wrote previously about the election cycle surge in government spending...

Some pretty good economic reports have energized various parts of the financial markets lately. Consumer spending is up, GDP is exceeding expectations and even factory orders, that perennial downer, popped this morning.

In response the dollar is soaring and interest rates are at breaking
out of their multi-decade down-channel. The economy is clearly
recovering, implying a return to normality. Right?

Nah, it’s just the usual election year illusion.

When the presidency is at stake the party in power always
pumps up spending in an attempt to put people back to work and create
the impression of a well-run country whose leaders deserve more time in
the spotlight.
After the election, spending returns to trend and the resulting bad news gets buried in “political honeymoon” media coverage.

*  *  *

So don't hold your breath; don't extrapolate this... we suspect Trump is being set up for a big fall as the impulse from this surge in government debt/spending fades ahead of his inauguration.

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NoDebt's picture

The Obama "legacy" must be preserved at all costs.

Baby Eating Dingo22's picture

LOL. They all do it

Bush was just discovering the power of the printer thanks to Hank. Obama was turned on to it and bought himself a new deuce and a quarter.Trump will use it to put his name on every corner

All Hail Kim Trump

abyssinian's picture

what are they ordering? Must be ordering a lot of paper and ink getting ready to print a lot more.  Bullish on trees. 

asteroids's picture

That's got to be due to Boings new Air Force 1 order. No, wait! Never mind.