December Durable Goods Were Weak
The headline number for seasonally adjusted, nominal durable goods orders fell 4.3% in December. That was worse than the lowest guess of economists in a survey conducted by Bloomberg.
Actual, Real Durable Goods Orders Were At Same Level as December 2012 and 2011
In real terms, adjusted for inflation, and not seasonally adjusted, the actual unit volume of orders has been unchanged for two years. There is no growth. The manufacturing “recovery” ended in December 2011. In fact, this year shows a 0.8% year to year decline. Durable goods orders unit volume remains 14% below the December 2007 level.
On a month to month basis, December is always an up month. This year was no exception, but the 6.2% gain from November is barely more than half of the usual 11.7% increase. It was way below the December 2012 jump of 16.3%.
Durable Goods Stagnate as Fed Prints and Stocks Soar
The Fed went on a money printing binge with QE3-4 taking effect in November 2012. From then until lately, stocks soared. But durable goods orders have stalled. The Fed driven stock market bubble is a fact. The manufacturing recovery is a myth.
Follow my reports on how the Fed and other central banks pump liquidity into the markets weekly in the Wall Street Examiner Professional Edition.
http://youtu.be/PQsf3OGET3U
![DRSTOOL!NEWHOMESALESANDJOBS[1]](https://i0.wp.com/wallstreetexaminer.com/wp-content/uploads/2014/01/DRSTOOLNEWHOMESALESANDJOBS1-50x50.gif?resize=50%2C50)
Stay up to date with the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market in the Fed Report in the Professional Edition, Money-Liquidity Package. Try it risk free for 30 days. Don’t miss another day. Get the research and analysis you need to understand these critical forces. Be prepared. Stay ahead of the herd. Click this link and begin your risk free trial NOW! [I cover the technical side of the market in the Professional Edition Daily Market Updates.]
See Rick Santelli use one of my proprietary charts on CNBC to explain how the Fed impacts the stock market directly through its trades with the Primary Dealers. This is just one example of the dozens of proprietary charts that I build that will help you to clearly see and understand the market’s trend, and when that trend is beginning to change.
Follow my comments on the markets and economy in real time @Lee_Adler on Twitter!
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
