Core Durable Goods Orders statistics were released from the States a short time ago and fell by a significant minus -1.6%, missing their estimate of 0.7% gain. The broad Durable Goods Orders data was even worse coming in with a negative -4.3%, a far cry below the expected climb of 1.9%. Nearly certain to be part of the weaker data will be ‘talk’ from apologists of a cold winter in America who try to place blame on anything but weaker demand.
However these numbers confirm what has been whispered loudly among naysayers, the American economy continues to struggle and Manufacturing is not as strong as has been hoped. The CB Consumer Confidence will be released in a little over an hour, if this reading misses its mark too, the broad markets – particularly Wall Street – which have been nervous the past week will find it hard to put in gains today.
FX, commodities, and equities remain under the shadow of the Fed’s policy statement tomorrow, but if data continues to be poor today from the States traders could be facing a possible storm. While U.S. government officials have been ‘talking up’ the strength of the economic outlook, questions abound about its durability.