And so that the great CapEx spending surge is delayed once more: supposedly to H3 2013 this time. Moments ago the Commerce Department reported [4]the latest Durable Goods numbers which were a total disaster: the headline print plunged by 7.3% on expectations of a -4.0% decline driven by a drop in Airplane orders (to be expected following last month's noted bumper Paris Air show spike [5]as Boeing reported only 90 new plane orders compared to 273 in June). Well, airplanes orders did indeed slide by 52.3%, but it was weakness in Transportation (-19.4%) and Computer (-19.9%) orders as well as Manufacturing (-9.8%) that took the market by surprise. This was the biggest miss to expectations since August 2012.
Excluding transportation, the drop was "only" -0.6%, however with the expectation of a +0.5% increase, and the prior month revised from unchanged to -0.1%, one can see that the expected revenue pick up for the remainder of 2013 in the S&P500 will be merely the latest myth to never take place.
The chart below showing the Year over Year change in headline Durable Goods says it all.
[6]
Finally, and what is worse, is that core CapEx in the form of non-defense Capital Goods excluding aircraft orders and shipments both tumbled too, sliding -3.3% (exp. +0.5%) and -1.5% (exp. 0.3%). But don't worry, some guy named David Zervos who works for a high yield trading desk says QE "worked."
The only good news in the above disaster of a report: taper delay advocates will have some more ammo, and the S&P will likely rise as a result of yet another confirmation that "since QEternity never actually worked, more QEternity is needed"