US Factory Orders Dropped Again In July As Tariff Front-Running Hangover Lingers

While US Manufacturing PMIs improved in August (after falling in July), today’s ‘hard’ data for US Manufacturing (for July) was expected to show another decline (after June’s large 4.8% MoM post-tariff-front-running drop).

Headline factory orders fell 1.3% MoM (as expected) as the hangover from the massive tariff-front-running in May lingers, dragging orders down to just a 1.6% YoY gain…

Source: Bloomberg

As a reminder, May’s tariff-front-running surge up 8.3% was the second biggest monthly jump in 69 years.

Core orders (ex-Transports) rose 0.6% MoM (the third monthly rise in a row)

Source: Bloomberg

Finally, on the bright side, is the pick up in ‘soft’ Manufacturing data signaling a silver lining in August factory data?

Source: Bloomberg

No matter, The Fed meets before the next print.