U.S. Factory Orders Flash Recession Warning – Drop YoY For 10th Month In A Row

For the 10th month in a row, US Factory Orders dropped year-over-year – the longest streak outside of a recession in history. Against expectations of a 1.2% decline MoM, August dropped 1.7% which is the worst MoM drop since Dec 2014, with a 24% drop MoM in defense new orders and capital goods. Most worrying however is the rise in the inventories-to-shipments ratio once again to cycle highs after a hopeful dip lower in July.