War Spending Rescues Factory Orders In May As Autos Collapse

Headlines will crow of the fact that US Factory Orders rose 0.4% MoM in May (better than the expectations), rebounding from the 0.4% drop in April (pushing factory order growth up 9.2% YoY - highest since June 2017).

However, what most will miss is that absent defense, new orders dropped 0.1% MoM after falling 0.6% MoM in April.

Which economy is booming America?

Defense Aircraft & Parts were up 21.1% MoM...

But automaker new orders plunged most since Jan 2015...

 

War is a racket, indeed.