Orders for U.S. Capital Goods Unexpectedly Dropped in May

[Purveyor]

Source: Bloomberg

June 24, 2016 — 8:30 AM EDT
Updated on June 24, 2016 — 9:24 AM EDT

Orders for business equipment unexpectedly fell in May by the most in three months, pointing to weakness in investment even before the likely damage to confidence stemming from U.K. voters’ decision to leave the European Union.

Key Points

Orders for non-military capital goods excluding aircraft, a proxy for future business investment in items like computers, engines and communications gear, declined 0.7 percent after falling 0.4 percent in April

Shipments of such business equipment, used in calculating gross domestic product, fell 0.5 percent after climbing 0.6 percent

Total bookings for durable goods -- or those meant to last at least three years -- slumped a more-than-expected 2.2 percent (forecast was 0.5 percent drop)



Read more: http://www.bloomberg.com/news/articles/2016-06-24/u-s-capital-goods-orders-unexpectedly-drop-most-in-three-months

[Kelvin Mace]

1. We make parts for heavy machinery

and we are off over 2% from last year so far.

[tonyt53]

3. Cat orders from overseas are really down.

[tonyt53]

2. Spring is when the car manufacturers start cutting back and re-tooling for the next model year.

That makes a huge dent by itself.

[elleng]

4. and this, Jobless Claims Sink (last week.)

http://www.democraticunderground.com/10141498006

Which is the 'leading indicator?'

[JackRiddler]

5. Orders lead, hirings/layoffs follow.

[elleng]

6. Right.

[phazed0]

7. "business investment in items like computers, engines and communications gear"

Well, seeing as we don't really make hardly any of that....