Core Durable Goods Slump In May As Capital Spending Proxy Disappoints

For the first time since June 2016, Durable Goods Orders fell in May for the second month in a row…

Core Durable Goods Orders tumbled after surging for 3 straight months…

And everyone’s favorite proxy for Capital Spending (Capital Goods New Orders Non-defense, Ex-Aircraft & Parts) fell 0.2% MoM (against expectations of a 0.5% MoM gain) – not a good sign for the tax cut plan.

 

And all of this happened with a 21.1% surge MoM in Defense aircraft orders (and 7.0% plunge in non-defense aircraft orders)…

Finally, we note that it appears to ‘different this time’ as the stock market is perfectly willing to ramp higher and higher despite being completely decoupled from the underlying economy…

Probably nothing.

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