Durable goods orders from the Census Bureau
- Prior was -0.8% (revised to -0.9%)
- Ex transport +0.1% vs +0.4% expected
- Capital goods orders non-defense ex air -0.2% vs +0.3% expected
- Prior capital goods orders non-defense ex air +0.1% (revised to +0.2%)
Yet another disappointing US data point. That's a big miss on capital goods orders non-defense ex air, despite the small revision higher to the April data.
This is a data point that has been serially disappointing for years. There is the odd stretch of a few months where it looks to be picking up and then it falls right back into the doldrums.
In terms of narrative, there was some good news after the election but companies are increasingly talking about holding off spending now until they get clarity on tax reform. That clarity is at least six months away.
