Despite all the exuberance over ISM 'soft' data, 'hard' data takes another hit today as Factory Orders for May tumbled 0.8% (worse than the 0.5% expected drop) for the biggest slide since November.
This is the second monthly decline in a row, signaling Q2 GDP may be weaker than expected.
Worse still, May saw the biggest (and first) MoM decline in US Manufacturers new Orders (ex-transportation) since Feb 2016...
The biggest culrpits for the decline are:
Defense aircraft and parts -30.8%, and
Non-defense aircraft and parts -11.6%
We're gonna need moar war.
And the divergence between the 'industrial' economy and the 'industrial' average continues to widen...