May Factory Orders ‘Scream Recession’
New orders for manufactured goods in May, down nine of the last ten months, decreased $4.5 billion or 1.0 percent to $470.5 billion, the U.S. Census Bureau reported today. This followed a 0.7 percent April decrease.
Shipments, down two consecutive months, decreased 0.3 billion or 0.1 percent to $482.1 billion. This followed a virtually unchanged April decrease.
And they arguably should have come in worse on a seasonalized basis:
Readers will see that monthly results, both seasoned and unseasoned, have been coming in lower than those seen three years ago throughout 2015 thus far.
Readers will also see that a May 2015 seasonal conversion to -2.0 percent or worse could easily have been justified.
Zero Hedge, with more thoughts:
Factory Orders Scream Recession: Annual Drop Biggest Since 2008
This has never happened outside of recession. .. Year-over-year, factory orders dropped 6.3% (adjusted) but 8% non-adjusted, the most since the financial crisis. Against expectations of a 0.5% drop MoM, manufacturers saw new orders tumble 1.0% and previous months were revised dramatically lower. Factory orders has now missed 10 of the last 11 months.
Factory Orders have fallen for 9 of the last 10 months …
Absent the occasional spike one sees due volatile aircraft orders, the year-over-year decline appears destined to worsen next month.
Factory orders and shipments factor into GDP.
How can these declines be so steep and projected second- through fourth-quarter GDP growth still be 2 percent to 3 percent?
[...] predictions were for a decline of between 0.5 percent and 0.7 percent. Additionally, as I noted at my home blog on Friday, the raw numbers were so bad that a seasonally adjusted result of -2.0 percent or worse [...]
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