Boeing, Apple, Caterpillar and Amazon reporting a significant global slowdown

Econoday reports ... The factory sector ended 2015 with a giant thud. Durable goods orders fell 5.1 percent in December vs expectations for a 0.2 percent gain and a low-end estimate of minus 3.0 percent. Aircraft orders didn't help but they weren't the whole cause of the problem as ex-transportation orders fell 1.2 percent vs expectations for no change and a low-end estimate of minus 0.4 percent. Core capital goods, which exclude defense equipment and also aircraft, are especially weak, down 4.3 percent following a 1.1 percent decline in November. Shipments for core capital goods, which are an input into GDP, slipped 0.2 percent following a downward revised 1.1 percent decline in November (initially minus 0.4 percent).
 Orders for civilian aircraft lead the dismal list, down 29 percent in December. The other main subcomponent for transportation, motor vehicles, also fell, down 0.4 percent in a reminder that vehicle sales were slowing at year end. Capital goods industries show deep declines: machinery down 5.6 percent, computers down 8.7 percent, communications equipment down 21 percent, and fabricated metals down 0.5 percent. Other readings include a surprising 2.2 percent monthly drop in total shipments and a 0.5 percent drop in total unfilled orders. All this weakness isn't a plus for inventories which rose 0.5 percent to lift the inventory-to-shipments ratio sharply, to 1.69 from 1.64. The rise in inventories poses a headwind to the sector and will dampen future shipments as well as employment and is a reminder of the inventory warning in yesterday's FOMC statement.

 Hat Tip to Mish,

The problem, quite simply, the American consumer was expected to drive  global trade.  But debt and Obamacare killed off discretionary consumer spending.  The two exceptions was Chinese flows into housing, and the record year for auto sales.  But those sub-primer auto sales will be turned into auto leases,which is what they are.  So we get a huge amount of cheap used autos hitting the market, and that's not bad.   Used autos have a relatively cheap  inventory cost,  They can sit  for years and still be fine, and they come with self propulsion...


Otherwise, welcome to Nancy Pelosi's recession.