This was a solidly positive day for economic data, but offering sadly little in the way of analytical interest. Nonetheless, two things stood out:
First, the great volatility of Japan's machinery orders continued in May, so I take this opportunity to unravel what's happening when you strip out the very considerable noise. And there is a coherent story.
Second, I look at US wholesale sector numbers for May. These were better than expected, with sales rising and inventories falling, with a bigger and earlier recovery in the inventory/shipment ratio than expected. In particular, the strength in the auto sector supply chain signals are impressive.
