- Second quarter final GDP 1.3% vs 1.7% prior
- Final sales 1.7% vs 2.0% prior
Separately, August durable goods orders -13.2% compared to -5.0% exp.
- Worst drop since Jan 2009
- Prior revised to +3.3% from +4.1%
- Ex-transport -1.6% vs +0.3% exp
- Non-defense ex-air +1.1% vs +0.5% exp
- Prior non-defense ex-air revised to -5.2% from -4.0%
Looking more closely, underlying orders aren’t as bad as they seem. Looks like aircraft orders might have been a massive skew.
Transportation equipment orders fell 34.9% and made up 92% of the decline in total orders. Defense orders were down 40% as well. Those components are extremely volatile. Reuters reports that Boeing received just one aircraft order in Aug, compared to 260 in July.
The GDP figure, however, represents shipments (not new orders) and is not painting a pretty picture. These soft orders numbers will filter in Q3 and Q4 GDP.
