After an armada of ugly data this week, US Durable Goods orders were expected to be the piece de resistance and it was - with preliminary March orders crashing 14.4% MoM (far worse than the already bad 12% decline expected), sending year-over-year durable goods orders down 14.7% - the worst since the great financial crisis..
The biggest driver of the drop was Boeing order cancellations (New orders ex-defense fell 15.8% in March after 0.2% fall)... four times worse than during the great financial crisis.
Outside of extreme swings in airline orders that distort the data drastically, this is the worst MoM drop ever.
There is a lot of noise in these numbers so one must be careful with Orders ex-Transports only down a measly 0.2% MoM (against expectations of 6.5% plunge) and the Business Investment proxy (Cap Goods Shipments non-Defense, ex-Aircraft) fell just 0.2% MoM (against expectations of a 7.0% collapse).
We suspect by the time the final March data comes in, this will be a bloodbath.