July Factory Orders Soar By Most On Record

Sustainable? Thanks to various massive airplane orders (as Ex-Im is threatened with extinction), US Factory Orders rose 10.5% MoM in July - the biggest MoM rise ever. However, this was a miss against expectations of an 11.2% rise and perhaps most critically, Factory Orders Ex-Transports dropped 0.8%, also missing expectations with its worst print since March 2013.

Factory orders spike (but miss)...

 

As Ex-Transports dropped most since March 2013.

 

So where did the boost come from? Same place where the record surge in durable goods orders arrived last week: Boeing airshow orders, funded courtesy of the ExIm bank and never before cheaper credit.

 

Finally, those curious what the level of inventory is, here is the answer: Inventories of manufactured durable goods in July, up fifteen of the last sixteen months, increased $1.9 billion or 0.5 percent to $401.5 billion, unchanged from the previously published increase. This was at the highest level since the series was first published on a NAICS  basis and followed a 0.4 percent June increase.

Best wishes selling all of that record inventory.