Factory Orders Drop 1.4%, Big Miss To Consensus, Snap Eight Month Winning Streak

May factory orders are the latest casualty of the gradual stimulus withdrawal: the forecast decline of -0.5% was almost tripled, coming out at -1.4%. This compares to an April increase of 1.0%. From the release: "New orders for manufactured goods in May, down following eight consecutive monthly increases, decreased $5.8 billion or 1.4 percent to $413.2 billion, the U.S. Census Bureau reported today. This followed a 1.0 percent April increase. Excluding transportation, new orders decreased 0.6 percent." And the artificual GDP booster, inventory ramp ups, has now plateaued: "Inventories, down following four consecutive monthly increases, decreased $2.0 billion or 0.4 percent to $520.4 billion. This followed a 0.6 percent April increase. The inventories-to-shipments ratio was 1.25, up from 1.24 in April." Little one can add here: this is merely the latest crumb on the path in the search for the full blown Double Dip Depression.

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