With manufacturing signals across the globe collapsing, expectations were for a modest drop in US Durable Goods Orders in May, however, the 1.3% MoM drop was far larger than expected and not helped by a notable downward revision in April.
Worst still, on a YoY basis, durable goods orders plunged 3.3% - the most since July 2016's post-Brexit panic.
Under the hood there was some silver linings to cling to with Capital Goods Shipments (ex-Air) rising 0.7% MoM (well above the 0.1% expected rise).
And a proxy for business investment - non-military capital goods orders excluding aircraft - rose 0.4% after a 1% decline in the prior month.
As Bloomberg notes, the pickup in equipment orders may ease concerns that unpredictable trade policy is weighing on manufacturers and complicating business investment. Stronger demand would offer more of a tailwind to second-quarter economic growth after a downbeat April figure.
But in this brave new world, bad news is better than good to keep that 50bps bogey on the table.