Factory Orders beast expectations with a 0.7% rise (against expectations of a 0.5% rise) but this marks the 2nd month in a row after the February spike bounce back that growth has slowed and in fact shows the post-weather-slump recovery is anything but being sustained. Ex-defense, new orders for April actually fell 0.1% (after rising 1.1% in March)… simply put, the entire beat was driven by defense (does that sound sustainable? or like organic growth?) Non-defense factory orders were the weakest since January (in the middle of the catastrophic weather)
Where did the “beat” come from? Defense orders. Manufacturer orders ex-defense declined 0.1% from the April print. Here are the worst factory orders (ex-defense) since January
And the monthly and annual change:
Chart: Bloomberg
via Zero Hedge http://ift.tt/1pCDqfg Tyler Durden