Wednesday, May 25, 2011

Durables Orders

Today’s April print fell far south of expectations (-3.6% vs -2.2%, consensus) with broad-based weakness. Stock futures at this moment are greatly worried, fearing this indicates trend and an economic lull. One key component is so-called Nondefense Capital Goods Shipments, a proxy for capital spending. This series is only slightly above its Q1 average, indicating that key capital spending has only expanded modestly into Q2.


Robert Craven

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