But if you read the following from Reuters, you wouldn't know that would you?
"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)
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)
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.
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.
Reuters: U.S. core capital goods orders falter unexpectedly in May
Now ask yourself: Is the U.S. economy accelerating? We sure think so.