Core US Durable Goods Orders See Annual Decline; Investment Proxy Soared

The headline orders are holding up, in spite of the tumbling manufacturing PMIs, which is not inflationary.

The US Durable Goods orders were expected to fall by 1.0%, but they actually rose by 1.0% MoM in April's preliminary data (after March had been revised down from a 3.2% MoM figure to a 2.8% MoM figure )...

Source: Bloomberg

Core orders (ex Transports) fell by 0.2% MoM, worse than the expected 0.1% decline. This pushed the YoY core order into the negative.

Source: Bloomberg

The value of core capital orders, a proxy measure for investments in equipment excluding aircraft and military hardware (although YoY, it was the lowest since December 2020 )...

It seems that despite the falling manufacturing PMIs it is still a good time to buy.

The headline orders are not being delivered

None of this is deflationary.