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Goldman Cuts Q2 GDP Forecast To 2.0% Following Miserable Factory Orders

Tyler Durden's picture




 

We suggested that Goldman would trim its Q2 forecast following the abysmal Factory orders number earlier. Sure enough, here it comes. To our surprise, however, the cut was on 0.1%. This can only mean that Hatzius has left more dry powder for further GDP cuts as more and more high frequency economic "misses" rise to the surface.

From Goldman:

MAIN POINTS:

 

1.    Factory orders declined by 0.6% (month-over-month) in April, in contrast to consensus expectations for a small increase. The decline resulted primarily from a drop in the nominal value of petroleum orders/shipments due to lower oil prices. Durable goods orders were unchanged in April, and non-durable goods orders/shipments excluding petroleum products increased by 0.2%.

 

2.    The report was a modest negative for our tracking estimate of Q2 GDP growth. In particular, growth in “core” durable goods shipments (nondefense capital goods ex-aircraft) was revised down. Non-durable goods inventories also increased less than we had anticipated. We therefore revised down our tracking estimate by one tenth to +2.0% (annualized).

 

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Mon, 06/04/2012 - 10:58 | 2491937 Conman
Conman's picture

Oh ok, explains why the market is ramping back green then.. all is well. for QE that is.

Mon, 06/04/2012 - 16:04 | 2493214 Ahmeexnal
Ahmeexnal's picture

plunge protection team is now going  in bareback.

Mon, 06/04/2012 - 11:04 | 2491964 mirac
mirac's picture

2%?  Surely they misplaced the decimal and it should read .02%

Mon, 06/04/2012 - 11:04 | 2491966 eclectic syncretist
eclectic syncretist's picture

Who do they think they're fooling revising it down by 0.1% to 2.0% growth??  ROTFLMFAO!

Obviously Goldman has some ulterior motive working on this blatant fabrication.  Begging the taxpayers to save them again.

Mon, 06/04/2012 - 11:04 | 2491969 maxmad
maxmad's picture

Bernanke is in a box!  Cant announce another QE or dollar is done, however market will collapse if he doesn't.  Oh, what a terrible web we weave....

Mon, 06/04/2012 - 11:41 | 2492136 FlyoverCountryS...
FlyoverCountrySchmuck's picture

CNN actually said this morning that Bernanke MUST PRINT, or the MArkets will collapse.

WITH IT, BLACK JESUS MIGHT LOSE THE ELECTION!

Mon, 06/04/2012 - 11:22 | 2492055 Standard Deviant
Standard Deviant's picture

Are muppets still supposed to be buying equities?    I can't remember.

Mon, 06/04/2012 - 11:36 | 2492121 l1b3rty
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At the top, these corporations are all 1!

http://silvervigilante.com

Mon, 06/04/2012 - 11:38 | 2492123 JustObserving
JustObserving's picture

If they used an accurate measure of inflation, growth would be negative.  But the game must go on and muppets must have hope.

Mon, 06/04/2012 - 11:47 | 2492155 Snakeeyes
Snakeeyes's picture

I don't blame them. Today and last week were DREADFUL. But what do you expect from a green ideologue like Obama? M

http://confoundedinterest.wordpress.com/2012/06/04/ny-ism-and-factory-or...

Mon, 06/04/2012 - 12:13 | 2492249 Nobody For President
Nobody For President's picture

Maybe GS relative optimism is due to their great stock performance lately:

http://finance.yahoo.com/q?s=GS&ql=1

 

Mon, 06/04/2012 - 12:18 | 2492259 The worst trader
The worst trader's picture

Pass the hopium please I;m coming down hard.

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Tue, 06/05/2012 - 06:48 | 2495123 Youri Carma
Youri Carma's picture

Or is Hatzius merely parroting JPM? Doesn't want to frontrun JPM predictions?

JPM Cuts Q3 GDP Forecast From 3% To 2%
1 June 2012
, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/jpm-cuts-q3-gdp-forecast-3-2

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