After rebounding from its July jolt, Durable Goods New Orders dramaticaly missed expectations in October (dropping 1.2% vs expectations of a 0.3% rise). Perhaps even more concerning is the drop in Core Capital Goods Orders (-0.5% MoM vs expectations of a 0.5% rise) – the biggest drop in 13 months.
The June/July swing (Boeing orders) and storm bounce has gone and October’s preliminary print suggests a slowdown…
Aircraft orders tumbled:
Nondefense aircraft orders -18.6%
Defense aircraft orders -11.3%
Removing the impact of aircraft orders and defense spending, we have a problem in the real economy…
Is this as good as it gets?
But then again – what does the real economy matter anyway?