After tumbling in January (thanks to no big Boeing plan order that juiced December's data), analysts expected a modest rebound (+0.2% MoM) in preliminary February data. However, they were wrong as durable goods orders dropped 1.0% MoM. And it's worse because this happened even after January's 4.5% drop was revised even lower to -5.0% MoM.

That is the weakest YoY rise in Durable Goods Orders since Feb 2021...

Source: Bloomberg

Core orders (ex transports) also disappointed - printing unchanged (below the +0.2% MoM exp), with the prior month's 0.8% MoM cut in half to +0.4% MoM downward revision.

On the positive side, the value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, rose 0.2% last month after a 0.3% advance in January.

However, this is all lagged and preliminary data for February (an eon ago relative to the current crisis levels).

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