Following the disappointing delayed durable goods print from last week, it was expected that today's Factory orders number would disappoint as well, and sure enough, it did not disappoint... in that expectation. With consensus looking for a 1.8% increase in September for the headline number, the delayed September number came out at 1.7% for the headline, the 6th miss in the past 9 months, while the ex-transport factory goods print dropped -0.2% following the August ex transports falling -0.4%. In other words, it was all transports once again, reflecting the rebound in orders for civilian aircraft as China's excess capacity bubble now seems to include all Boeing aircraft from 737 to 787.
A notable surge was seen in the 18% rise in defense spending, offset however by a 23% drop in Mining - looks like that Caterpillar renaissance is once again delayed. This happened in the context of inventories of manufactured durable goods rising $3.1 billion or 0.8 percent to all time high $382.3 billion in September.
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What is, however, worst for corporate capex however, is that the Census Bureau also reported that orders for capital goods ex air, i.e. core capex, fell an annualized 7.2% in Q3.
And now back to the recoveryless meltup.