The headline print of a record-breaking 22.6% gain – smashing the 8.0% expectation – hides the extremely obvious factor of the largest civilian aircraft orders (an entirely one-off non-repeatable factor). Durables ex Transportation collapsed from a 3% gain to a 0.8% drop – the biggest drop in 2014, missing expectations by the most in 8 months. Perhaps even more concerning, non-defense ex-aircraft new orders dropped 0.5% (missing expectations of a 0.2% gain).
One-off…
Boeing orders from UK air show lead to nondef aircraft orders increased 318%
Transportation Equipment orders in July were $133 billion, up from $76.3 billion in June; driven by Nondefense aircraft and parts new orders at $70.3 billion, up from $16.9 billion
Here is a chart of what happens as everyone scrambles to order Boeing jets ahead of what may be the upcoming “expiration” of the ExIm bank: nothing short of an outlier print for transportations nondefense aircraft and parts new orders:
Reality is much less pretty, with the 0.8% drop in ex-transports the largest of 2014.
via Zero Hedge http://ift.tt/1pC8VFP Tyler Durden