After four straight months of growth, analysts expected US durable goods orders to decline in February and they did but far more than expected (tumbling 2.2% MoM vs -0.6% MoM expected).
That is the biggest MoM drop since April 2020.
This drop came despite a 60.1% surge in defense aircraft new orders (offset by a 30.4% drop in non-defense aircraft orders).
The value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, also dropped notably (down 0.3% MoM vs an expected rise of 0.5%)…
And finally, core capital goods shipments, a figure that is used to help calculate equipment investment in the government’s gross domestic product report, rose in February but far less than expected (+0.5% MoM vs +1.0% exp)
Are we starting to see the impact of Russia’s invasion (and the economic warfare response) hitting the US economy?