Core Capital Goods Orders Plunge Most In 13 Months

After rebounding from its July jolt, Durable Goods New Orders dramaticaly missed expectations in October (dropping 1.2% vs expectations of a 0.3% rise). Perhaps even more concerning is the drop in Core Capital Goods Orders (-0.5% MoM vs expectations of a 0.5% rise) - the biggest drop in 13 months.

The June/July swing (Boeing orders) and storm bounce has gone and October's preliminary print suggests a slowdown...

Aircraft orders tumbled:

  • Nondefense aircraft orders -18.6%

  • Defense aircraft orders -11.3%

Removing the impact of aircraft orders and defense spending, we have a problem in the real economy...

 

Is this as good as it gets?

 

But then again - what does the real economy matter anyway?

Comments

Endgame Napoleon Amphius1 Wed, 11/22/2017 - 18:11 Permalink

All good news during Clinton....

All good news during most of Bush....

(Housing Collapse [brief bad news interlude])

All good news during Obama....

All good news now.....

Trump was elected because the economy is great—GREAT—and we had nowhere to go from up but up.

The slogan should have been Make America Even Greater.

Greatness must equate with a Third World-sized middle class and gig economy-style paychecks, mostly consumed by rent until you lose the job/gig.

In reply to by Amphius1

Quivering Lip Wed, 11/22/2017 - 09:39 Permalink

All Gobermint numbers are noise. Look back 3 years and everything looks flat. Just like corporate earnings. Besides we don't produced anything DURABLE in this country anymore.

William Dorritt Wed, 11/22/2017 - 09:46 Permalink

The Median household (us census data) is taxed at 62% on their $56K income. Not only does the household not have money for a new dish washer, they don't have money to eat and run up their credit cards to survive.

Endgame Napoleon Ricki13th Wed, 11/22/2017 - 18:18 Permalink

Policing the globe does not generate widespread wealth. Industrial investment to mobilize for WWII did, but it would not have if the Rosie Riveters had stayed in the workforce, driving wages down by their willingness to accept low pay due to unearned income. They helped during the war mobilization and then went home in most cases, raising their own children.

In reply to by Ricki13th