It’s just factory orders…ignore it. For the 11th month in a row, US Factory Orders have fallen year-over-year, re-accelerating the most recent drop to -6.9%, something that has not happened outside of a recession in history. In fact, adjusting for the one-off Boeing surge in July 2014 this is biggest Y/Y drop since October 2008. Month-over-month, orders fell 1.0% (more than expected), down for the 11th month in the last 14. The good news is that inventories dropped 0.4% (for the 3rd month in a row) but that will further hurt GDP, but, unfortunately, inventories-to-shipments remain at 1.35x cycle highs.

History revised lower…

Recession much?

Finally Capital Goods (non-defense) plunged 7.4% in September (and is down 12.9% YoY).

Charts: Bloomberg