Core Durable Goods Orders Slump As Inventories Decline For 4th Straight Month

Core Durable Goods Orders tumbled 0.8% MoM and 6.7% YoY - down 15 of the last 18 months. However, following drastic revisions across the entire time series and thanks to a surge in military spending (+3.7%) and non-defense aircraft (+64.9% - bringing back memories of Boeing's aberration from a year or two back) the headline Durable Goods print rose 3.4% MoM. More worrying for GDP enthusiasts is the 0.2% decline in durable goods inventories in April for the 4th straight month.

Not a pretty picture under the hood....

 

Non-Defense Aircraft New Orders spiked 64.9% - but in context, it's not so impressive...

 

Charts: Bloomberg