After November's big downside surprise in Durable Goods Orders, analysts hoped for a modest rebound in December but preliminary data showed a huge rebound (up 2.4% MoM vs +0.3% MoM expected).
Additionally the 2.1% drop in November was revised even further down to -3.1% MoM.
Motor Vehicles and Parts orders plunged YoY..
However, if we remove Defense spending (a 168.3% surge in Defense Aircraft New Orders), durable goods orders remain ugly...
Thanks to a 75% collapse in Non-Defense Aircraft New Orders...its lowest level since 2009 as Boeing implodes.
There goes GDP!
None of which should be a surprise, as we noted previously, Boeing's production cuts will cut Q1 GDP growth by a third.