Yesterday's Factory Orders report was the latest in a series of hard cyclical data that continued accelerated in the month of May, joining Industrial Production, Durable Goods and Capex.
But if you read the following from Reuters, you wouldn't know that would you?
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"Factory goods orders dropped 0.8 percent, the Commerce Department said on Wednesday after a revised 0.3 percent decline in April. It was the second straight monthly decrease in orders. Economists had forecast factory orders falling 0.5 percent in May after a previously reported 0.2 percent drop in April." |
This has been a continual theme for the mainstream media, mischaracterizing accelerating economic data. Here's the year-over-year breakdown in data on Industrial Production, Durable Goods, Capex and Factory orders, which all show a crystal clear trend (with the mainstream media's analysis also below):
- Factory Orders accelerated to 4.2% year-over-year versus 3.7% in the prior month (see chart below)
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USA Today: US factory orders fall in May for second straight month
- Industrial Production accelerated to +2.2% year-over-year (a 29-month high)
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FT: US industrial production stalls in May after sharp rise
- Durable Goods Ex-Defense & Aircraft (a proxy for household spending) accelerated from +3.7% year-over-year in April to +5.3% in May. That's a 33-month high.
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MarketWatch: Durable-goods orders backslide again
- Capital Goods (Capex) accelerated from +3.1% year-over-year growth in April to +5.0% in May. That's a 33-month high too.
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Reuters: U.S. core capital goods orders falter unexpectedly in May
Now ask yourself: Is the U.S. economy accelerating? We sure think so.
