Quick review of cap ex spending and the jobs market

Core durable goods orders were softer than expected in May as they fell .6% m/o/m vs the estimate of up .1%. April was tweaked to a .3% gain from the first print of up .2%. On a y/o/y basis core capital spending is flat, down .2%. The only sectors up m/o/m were autos by .7%, computers/electronics by .1% and fabricated metal by .3%. Declines were seen in machinery, electrical equipment and primary metals.

Bottom line, core capital spending as measured here has flat lined over the past two years. You’ve heard me say now many times this feels much more like a 1.5% type economic growth environment, not 3%.