Durable Goods Orders Disappoint, But Military Spending Saves The Day

After two months of declines, Durable Goods Orders were expected to rebound handsomely in June... they didn't.

Against expectations of a 3.0% MoM surge in Durable Goods Orders, the Census Bureau reported a meager +1.0% increase...

This is the biggest miss since Oct 2017

However, thanks to the military-industrial complex - which saw defense spending rise 20.2% MoM - the number remained positive...

This is the 3rd month in a row of massive monthly increases in military spending.

Remember, war is a racket.

The silver lining in the report is that shipments of those goods, used to calculate gross domestic product, rose 1% (beating the expectations of a 0.4% rise) after a 0.2% increase...

This is the best monthly gain since Sept 2017.