Submitted by Tyler Durden on 06/04/2012 - 10:14 Gross Domestic Product
Nobody could have predicted that today's April Durable Goods number (and key component of where Q2 GDP is headed) just over two weeks from the FOMC's June 20 meeting, will be a slaughter. NOBODY. Printing at -0.6%, the number was a huge miss to expectations of a 0.2% rise, and is the 3rd drop in the last 4 months. The previous number was also revised lower from -1.5% to 2.1% so at least it rose. Still, this was miss number 5 out of the past 7 reports. Excluding transportation, new orders plunged 1.1%, after falling another 0.7% in march.. The main reason for the headline collapse: a 21.5% plunge in defense orders. As Bloomberg's Rich Yamarone said, "Crummy" start for 2Q investment component of GDP report as shipments of nondfense capital goods ex-aircraft fell 1.5%. Expect Q2 GDP forecast cuts from Goldman et al within minutes: we expect Hatzius to trim his 2.1% Q2 GDP estimate to about 1.8%.
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http://www.zerohedge.com/news/factory-orders-add-insult-economic-injury
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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