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.

Comments

Quantify topspinslicer Tue, 07/03/2018 - 14:14 Permalink

Nearly impossible to keep infrastructure at a premium. As the population increases so does the requirement for more social spending for the masses. Starbucks jobs don't pay taxes enough to keep 4.1 million miles of roads in the U.S. pothole free. Not to mention 607,000 bridges. Now don't forget social security recipients which currently is around 60 million. Medicare, Medicaid, food stamps Border patrol, DHS, FBT, ATF, Civil air patrol, Army, Navy, Coast Guard, Marines, Post office -500,000 employees yes half a million just in the post office. And people wonder why we print a trillion $ a year. It's collapsing, just like Rome.

In reply to by topspinslicer

silverer rejected Tue, 07/03/2018 - 10:32 Permalink

Problem is, the war economy is as bad as QE. Spend a million dollars on a bridge or water main project, you have something positive to point to that enhances productivity and growth. Explode a million dollar piece of ordnance, and you can point to a hole in the ground that delivers nothing except more debt.

In reply to by rejected

MuffDiver69 Tue, 07/03/2018 - 10:57 Permalink

Doom and Gloom is fun, but orders can only increase so much when you look at the facts. This country is having to rebuild its supply chain as manufacturing increases. Trucking,railroads and shipping of any type is clogged as it’s ever been. These things happen after 16 plus years of globalist hacks....

 

Shipments, up 12 of the last 13 months, rose $2.8 billion or 0.6% to $496.1 billion, following a 0.1% increase in April.

 

>Unfilled orders, up 6 of the last 7 months, gained $6.2 billion or 0.5% to $1,160.8 billion. This followed a 0.6% April increase.

The unfilled orders-to-shipments ratio was 6.68, down from 6.73 in April. Inventories, up 19 consecutive months, gained $1.3 billion or 0.2% to $668.4 billion after a 0.4% increase in April. The inventories-to-shipments ratio was 1.35, unchanged from April.

 

Winston Churchill MuffDiver69 Tue, 07/03/2018 - 11:14 Permalink

BK lawyers are hiring fast, because contrary  to group think more companies go bankrupt in a upturn than

in the downswing.All the money spent on stawk purchase  leaves a big hole where working capital should be.

With the Fed QTing over trading becomes a big issue.

Be careful out there.Lots of old signs from 2007 out there, some unlicensed roofer told me this week he wanted to

make $1k per day.Just him,no help. Peeps are paying it as well.

In reply to by MuffDiver69

Triple A Tue, 07/03/2018 - 11:19 Permalink

When a government is going into 1 TRILLION dollars of debt in a year, how can they not make the dumb downed populace believe that the "economy" is booming. The fact that we only have as much "growth" that we do with going into this much debt is fucking pathetic. 

"11th hour's gone nothing's resolved
There's no alternative to becoming involved
Strike up the band round up the men
Ready to die for nothing"

war is truly a racket 
 

Chaotix Tue, 07/03/2018 - 16:00 Permalink

The Defense Industry has, and always will be, the greatest investment for globalist pedophiles and psychopaths. Many of them are only for private investors. It's a pentagon/contractor orgy. And like the illustrious George Carlin said, "It's a big club' but you ain't in it!".

Let it Go Tue, 07/03/2018 - 18:29 Permalink

Some investors have stated that war is good for the economy but it could be argued not always. While disputing the statement I also rail at the arrogance of such people who often have little regard for the lives that war destroys

Long gone are the days of conquering your enemy then raping and plundering your way to glory and riches. The article below argues war is a destructive force that should be avoided when possible.

  http://War Is Good For The Economy-Well Not Always.html