Durables Goods, Excluding Bumper Boeing Orders, Suffer Biggest Drop Of 2014

[thenews]

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:

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[techmac]

Wait for the next month (and a correction )

Sad that the industry of the world strongest economy can depend on one single order. Tells us a lot about the real state of that economy. If porn would be forbidden then the disaster would be complete