US Factory Orders Contract For 2nd Month In A Row As War-Spending Plunges

Having fallen for two straight months, and despite the decline of US (and the rest of the world's) Manufacturing PMIs, expectations were for a rebound in Factory Orders in June and they did, rising 0.6% (buyt less than the expected 0.7% MoM gain following a major downward revision for May to a 1.3% drop).

  • New orders ex-trans rose 0.1% in June after falling 0.03% the prior month

  • New orders ex-defense for June rise 1.1% after falling 0.8% in May

However, this is the second month in a row of year-over-year factory order declines.

With a the biggest driver a slump in defense spending...

However, based on the lagged ISM Manufacturing PMI, US Factory Orders are set to tumble further...

And Trump's latest tariffs are unlikely to help that situation... although war would help?