June 25, 2014

May Durable Goods Orders: Down 1 Percent; April AND May Shipments Up Only a Combined 0.3 Percent

The excuse-makers at the Associated Press are at it again:

ORDERS FOR US DURABLE GOODS DROP 1 PERCENT IN MAY

WASHINGTON (AP) — Orders for U.S. durable goods tumbled 1 percent in May as demand for military equipment fell sharply. But excluding defense-related goods, orders actually rose, and orders in a key category that signals business investment also increased….

Readers can go to the Census Bureau’s release. When they do, they’ll find quite a few negative numbers from April to May.

Of particular relevance to second quarter GDP, shipments didn’t increase at all in April, and only went up 0.3 percent in May. It’s hard to see how that helps get you to annualized growth of 3.5 percent in the second quarter — a prediction to which AP continues to hold.

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2 Comments

  1. But, but, but Goldman says that durable good report justified their increase of 2Q GDP prediction to 4.0%.

    Of course, Goldman, while helping cause the Great Recession, said that all was well.

    Comment by steveegg — June 25, 2014 @ 1:33 pm

  2. Down literally is up over there.

    Comment by Tom — June 25, 2014 @ 1:59 pm

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