Factory Orders Drop; New Home Sales Drop 16.9%; Elite Media Shocked (again)
Posted by iusbvision on March 26, 2011
Once again, the headline on a financial story reads: unexpectedly. At what point do we conclude the economists relied upon for these projections are worthless, as they never appear to expect what’s going to happen?
US factory orders drop unexpectedly
Lower demand for machinery and defense equipment prompted a fall in US factory orders in February, the Commerce Department said Thursday, dashing hopes for a rebound after start-of-year blizzards.
New orders for big-ticket items — such as planes, computers and cars — fell 0.9 percent during the month, led by a 4.2 percent drop in machinery orders.
That shocked economists, who had expected orders to rise.
[IUSB Vision Editor’s Note – Indeed. According to the elite media “most economists” were surprised by month after month after month of unexpected, unexpected, unexpected, unexpected, unexpected bad economic news for the last two years. Of course to those who were paying attention it wasn’t unexpected at all.]
Hotair.com nailing Reuters on the not so “unexpected”:
Despite the very obvious red flag from last week’s announcement, today’s announcement managed to catch Reuters by surprise … again:
New single-family home sales unexpectedly fell in February to hit a record low and prices were the lowest since December 2003, showing the housing market slide was deepening.
The Commerce Department said on Wednesday sales dropped 16.9 percent to a seasonally adjusted 250,000 unit annual rate, the lowest since records began in 1963, after an upwardly revised 301,000-unit pace in January.
Sales plunged to all-time lows in three of the four regions last month. Economists polled by Reuters had forecast new home sales edging up to a 290,000-unit pace last month from a previously reported 284,000 unit rate.
What were they expecting? The big drop in starts announced last week had to mean that new-home sales had stalled, and that capital for new starts had been choked off as a result. Last week’s announcement even referenced the climbing inventory in new single-family homes. If inventory grew and new starts fell, should the math on this equation really be that difficult?