The headline print of a record-breaking 22.6% gain – smashing the 8.0% expectation – hides the extremely obvious factor of the largest civilian aircraft orders (an entirely one-off non-repeatable factor). Durables ex Transportation collapsed from a 3% gain to a 0.8% drop – the biggest drop in 2014, missing expectations by the most in 8 months. Perhaps even more concerning, non-defense ex-aircraft new orders dropped 0.5% (missing expectations of a 0.2% gain).
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But the media reported a record breaking increase. Initially. The articles reporting the record breaking increase have been removed or modified from the news stream. Tired of smoke and mirrors?
David DeGerolamo
