Durable Goods Miss, Inventory Stockpiles Soar To New All Time High

Tyler Durden's picture


We have been keeping a close eye on economic reports in the month of March and as of this morning's just reported Durable Goods number we are now officially at miss 15 of 17. The headline print was +2.2% to a total of $211.8 billion, on expectations of +3.0%, up from a revised -3.6% decline in January. Ex-transportation, the number was +1.6% on expectations of a 1.7% increase, while Non-defense ex aircraft was up 1.2% on Exp. of 1.5%. The primary driver in the core slump was electrical equipment which slide 2.5% in February from $10.5 billion to $10.25 billion - are Americans getting all "gizmoed out?" And finally, for those who are saying the inventory restocking is over, we have two words: Dead Wrong. "Inventories of manufactured durable goods in February, up twenty-six consecutive months, increased $1.6 billion or 0.4 percent to $373.7 billion.  This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.6 percent January increase.  Machinery, up twenty-three consecutive months, had the largest increase, $0.6 billion or 0.9 percent to $62.2 billion.  This was also at the highest level since the series was first published on a NAICS basis." That's right - inventories just hit an all time high having increased 26 months in a row. And now you know where US economic "growth" has been hidden all these years. But yes, if you build it, they will come. Eventually. In the meantime, expect sell-side desks to again enact Q1 tracking GDP reductions.

Durable Goods

Inventories: simply stunning.

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Wed, 03/28/2012 - 08:49 | 2296866 Irish66
Irish66's picture

long trucks to move stuff around and count as sold!

Wed, 03/28/2012 - 08:52 | 2296874 GetZeeGold
GetZeeGold's picture



Chevy Volts up the wazzoo! Get yours now cause they're going up in flames fast.


Wed, 03/28/2012 - 08:54 | 2296880 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Don't forget your new piece of iCrap. It awaits.

Wed, 03/28/2012 - 08:58 | 2296898 francis_sawyer
francis_sawyer's picture

I'll bet the guns & ammo depots aren't sitting there with rotting inventory...

Wed, 03/28/2012 - 09:02 | 2296913 malikai
malikai's picture

Damnit you beat me to it!

Wed, 03/28/2012 - 09:14 | 2296958 stocktivity
stocktivity's picture

You screwballs with your guns and ammo make me chuckle. Do you really think things would be sooo out of control that your guns will save you? Do you really think there would be no more police , swat teams, national guard call ups, ect to surround you and your property if you ever began or even threatened to shoot? Do you honestly believe that your guns and ammo would save you from out of control mobs of people that will swarm over your property and take it all if you don't protect it? Do you really deep down believe that things will get soooo bad that you will have to hunt for your food to survive? That every food manufacturer will go bankrupt? That you have to stand guard over your fruit and vegie garden 24 hours a day or the out of control mobs will come and steal them? Wow...get out of your fantasy world and come back to the real world. By the way...thanks for the chuckles all you rough and tough gunslingers. hee heee.

Wed, 03/28/2012 - 09:18 | 2296969 jus_lite_reading
jus_lite_reading's picture


Then you are invited to my secret garden...

Wed, 03/28/2012 - 09:37 | 2297026 JPM Hater001
JPM Hater001's picture

So prices will be coming down and all is good in America right?

Wed, 03/28/2012 - 09:46 | 2297052 jus_lite_reading
jus_lite_reading's picture

Basically, stockdummy suffers from cognitive dissonance and delusions of pink unicorns just around the corner... 

Wed, 03/28/2012 - 09:19 | 2296977 Race Car Driver
Race Car Driver's picture

Magic Eight Ball says: Chances are good

Wed, 03/28/2012 - 09:41 | 2297035 francis_sawyer
francis_sawyer's picture

 "Do you really deep down believe that things will get soooo bad that you will have to hunt for your food to survive?"

Thankfully ~ I have enough of a supply to get me through enough of a period that I won't have to go hunting for it while the storm passes... & even if I do run out, I'm happy to know that there will be people like you that I wouldn't even have to shoot... That's assuming someone else hadn't pistol whipped you already...

Wed, 03/28/2012 - 09:46 | 2297053 BadKiTTy
BadKiTTy's picture

You know what?....... You may be right. But as Churchill said "i would rather die on my feet a free man, than to live on my knees as a slave".

We can assume you will be one of those on their knees........


Wed, 03/28/2012 - 10:10 | 2297104 William113
William113's picture

Hey Buttnut your ignorant thoughts work if you live in the city. There is no SWAT team in 90% of the country and the police, National Guard are poorly trained. You must live in MASS HOLE Chuesetts and you think the GOVERNMENT is going to keep you safe. Why do you think the state GOVERNMENTS (including Mass.) are passing stand your ground laws they know if the shit hits the fan they can't do anything about it. But don't worry your liberal ass will be protected by your neighbor and his shiny new Mossberg pump shot gun.

Wed, 03/28/2012 - 10:15 | 2297118 BandGap
BandGap's picture

I have guns, I have friends and I have friends with guns.

The best defense is a good offense. Would you steal from a garden if you thought you might get lead poisoning?

Wed, 03/28/2012 - 10:46 | 2297190 RallyRoundTheFamily
RallyRoundTheFamily's picture

Ask the Katrina survivors how that worked out for them. 

Wed, 03/28/2012 - 11:22 | 2297363 Nels
Nels's picture

For some, it's as if there are no more police already ....


Wed, 03/28/2012 - 11:36 | 2297426 catacl1sm
catacl1sm's picture

You obviously haven't read about the roving bands of farm marauders in Weimar at the height of the hyperinflation. Hungry people are desperate people.

Wed, 03/28/2012 - 11:50 | 2297475 zuuma
zuuma's picture

All those cops, Natl Gaurdsmen, SWAT, etc. types will be vastly more concerned with their OWN families.

Count on it. That's the nature of human beings. Truthfully, I don't blame them.

I live 3 -4 days walk from the nearest city.

I & my Ant neighbors will be very unhappy if you and your Grasshoper neighbors manage to make it to my prepared, self-sufficient anthill expecting to be fed for a few months.

We will be disinclined to hand over the fruits of our labor and planning.

Winter's coming. It always does.

Wed, 03/28/2012 - 12:03 | 2297525 Chuck Walla
Chuck Walla's picture

You screwballs with your guns and ammo make me chuckle. Do you really think things would be sooo out of control that your guns will save you?


Guess you never head of the Progressive paradise and Showplace - Dee--Troit.  Or is there some honor in dying like the little Media Matters lap dog you are?

Wed, 03/28/2012 - 09:58 | 2297076 William113
William113's picture

Ruger has run out of inventory. hee hee

Wed, 03/28/2012 - 09:01 | 2296911 malikai
malikai's picture

Well, at least sales are strong in lead, gunpowder, and molded stainless.That's got to be good for the gap in DG.

Wed, 03/28/2012 - 10:17 | 2297125 HomoHominiLupus
HomoHominiLupus's picture

For what it's worth, the Chevy Volt has been declared "2012 Car of the Year" in...drumroll please...GERMANY of all countries. Known as the Opel Ampera, it has NO competition, which, given the car's limitations and apparent quality problems is amazing but perhaps not so much if you take an average gasoline price of $10 per gallon across Europe into consideration. Draw your own conclusions...

Wed, 03/28/2012 - 14:55 | 2298154 RollinsArline3
RollinsArline3's picture

my classmate's sister makes $67/hour on the laptop. She has been without a job for 6 months but last month her pay was $20212 just working on the laptop for a few hours. Read more on this web site .....  http://lazycash9.com

Wed, 03/28/2012 - 09:03 | 2296919 jus_lite_reading
jus_lite_reading's picture

Few people understand that forecasts that companies spend millions on are based on false economic indicators... just as retirement and pensions are based on false "inflation" data... Ben knows that if the true inflation rate of 10-12% were published and made the official CPI there would be major storms all over...

It is already game over... these charts help you remember that

Wed, 03/28/2012 - 09:13 | 2296954 theorist
theorist's picture

You are not too far off on that. In the good old days, a company with excess inventory would set up a separate company for the special purpose of buying its inventory. They would sell to this new company through a loan arrangement directly, or in a convoluted way through a bank, whilst indirectly guaranteeing the bank loan themselves. Hey presto, you had earnings...

Wed, 03/28/2012 - 09:31 | 2297015 Roscoe
Wed, 03/28/2012 - 10:05 | 2297091 Neo1
Neo1's picture

Returning to real money is the best way to put more money in your pocket to buy this inventory.

The real reason you pay an income tax, is for the privilege of using a private currency.

Also known As A:  Federal Reserve Note

Demand from your bank or brokerage, lawful money and the tax goes away, with a tax exemption on lawful money, all of your money is yours.



Tax Exemption: http://stormthunder.com/federal-reserve-act/#ixzz1pOYzDgEm

 Web search these three different phrases:

Redeemed in Lawful money  or

Redeemed in Lawful money Pursuant to Title 12 USC §411  or

deposited for credit on account or exchanged for

non-negotiable federal reserve notes of face value  

Wed, 03/28/2012 - 08:50 | 2296871 stant
stant's picture

bullish warehouse fires

Wed, 03/28/2012 - 09:00 | 2296909 jus_lite_reading
jus_lite_reading's picture

You mean "Jewish lightning"

Wed, 03/28/2012 - 09:04 | 2296920 oak
oak's picture

Big fire sales are coming. DEFLATION!

Wed, 03/28/2012 - 08:53 | 2296879 LongSoupLine
LongSoupLine's picture




yayyyy! GDP! GDP! GDP!

Wed, 03/28/2012 - 08:54 | 2296882 i-dog
i-dog's picture

Well, there are plenty of empty facilities to store "stuff" in.

Wed, 03/28/2012 - 08:59 | 2296899 DeadFred
DeadFred's picture

And at 0% interest the cost of holding all that inventory is low, that is if you're a BIG CORPORATION that can get the Fed's free money. You small businesses can just suck on some lemons.

Wed, 03/28/2012 - 08:55 | 2296885 WoodMizer
WoodMizer's picture

15 of 17, Jesus this world is fucked.

The markets know not what they do.

Wed, 03/28/2012 - 09:26 | 2297000 EscapeKey
EscapeKey's picture

Yeah they do, react to the expectation of further QE (time for Guru).

Wed, 03/28/2012 - 09:56 | 2297072 fuu
fuu's picture

I've been trying to figure out what the 2 of 17 were.

Wed, 03/28/2012 - 10:24 | 2297142 BooMushroom
BooMushroom's picture

Bullshit manipulated unemployment, and bullshit manipulated inflation.

All the actual, factual, real numbers have been bad.

Wed, 03/28/2012 - 11:58 | 2297504 fuu
fuu's picture

Should have known.

Wed, 03/28/2012 - 08:56 | 2296886 q99x2
q99x2's picture

Long Junk Yards, recycling, and wealth re-distribution.

Wed, 03/28/2012 - 10:27 | 2297149 BooMushroom
BooMushroom's picture

How do you go long wealth redistribution? And if you make a killing, don't they just take it away and give it to someone else, anyway?

Wed, 03/28/2012 - 08:56 | 2296887 francis_sawyer
francis_sawyer's picture

Better crank up the speed on those printing presses Benny...

Wed, 03/28/2012 - 08:56 | 2296889 A Dim View
A Dim View's picture

but, but, but.... i thought all these corporations were sitting on mountains of cash.


Or was it "cash in kind"... it's so confusing

Wed, 03/28/2012 - 08:57 | 2296893 chistletoe
chistletoe's picture

You have theright ides but the wrong language here ...


this behavior pattern is called "hoarding" .... just like those people who are stockpiling inventory of precious metals ....

Wed, 03/28/2012 - 08:59 | 2296896 WoodMizer
WoodMizer's picture

So, Bernanke walks into a bar, and the bartender says

"why the long farce".

Wed, 03/28/2012 - 09:29 | 2297005 Osmium
Osmium's picture

Or Gran Torino.

Bernanke walks into a bar, the bartender looks up and says "Get the Fck Out of Here"


Wed, 03/28/2012 - 08:59 | 2296902 Hmm...
Hmm...'s picture

It's probably because of the weather.  It usually is.  Warm weather often depresses the markets.  So does cold weather.  And perfectly average weather too.  Except when it doesn't.

Besides, what's wrong with inventory?  You don't want to be like in the USSR where they had bread lines but no bread, do you?

Wed, 03/28/2012 - 09:09 | 2296937 Irish66
Irish66's picture

How much extra chemicals do they have to put in the bread to last longer?

Wed, 03/28/2012 - 11:41 | 2297445 catacl1sm
catacl1sm's picture

The other day I went to get some potatoes out of the pantry and found that they all had eyes rampantly growing. At first, I was horrified. None of the potatoes I had stored before ever had eyes growing. Then I remembered my childhood, that eyes like these were the norm back then. That was when I realized that this bag of potatoes was organic. The other bag of potatoes (red) in my pantry did not have any eyes and was not organic. Non-organic potatoes are sprayed with a chemical to prevent them from growing eyes. I wonder what it prevents you from growing.

Wed, 03/28/2012 - 13:15 | 2297759 Things that go bump
Things that go bump's picture

Get a bread machine - make your own. Then you always know what is in it.

Wed, 03/28/2012 - 09:00 | 2296903 Robslob
Robslob's picture



And now you have your excuse for more QE on lower GDP projections compliments of Ben-O...this must be what the markets are pricing in that we are not?

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