US Factory Orders Continue Year-Over-Year Decline

After Boeing-battered durable goods orders data, but ISM Manufacturing surged by the most in 7 years, all eyes were on December's Factory Orders data to break the tie on the real state of the US economy.

After a notable down revision for November (from -0,7% MoM to -1.2% MoM), December US Factory Orders rose 1/8% MoM (better than the 1.2% rise expected). That is the biggest MoM jump since Aug 2018.

However, on a year-over-year basis, factory orders remain lower (-0.4% YoY) for the 7 month in 2019...

Source: Bloomberg

For now it seems like the surveys over-reacted, but the overall trend of manufacturing hard data is not at all positive...

Source: Bloomberg

Sorry to say, hard data should trump soft data every time... but that's not how the algos work.