The U.S. factory goods data The U.S. factory goods data proved as ugly as the day's jobs report, with big price-induced petro-hits to nondurables that left a 1.1% August nondurable shipments and orders drop and a 0.6% nondurable inventory decline. Analysts also saw downward revisions in the August durable goods figures that show an even bigger orders unwind of July boosts from the auto and defense sectors and a June boost from the Paris Air Show, alongside weak shipments and inventory data and only a tiny equipment sector bounce after a weak Q2. Analysts lowered our Q3 GDP growth estimate to 2.3% from 2.5%, with a 4% (was 5%) pace for equipment spending and a $29 B inventory subtraction that still leaves a lofty $85 B accumulation rate, following a tiny 0.3% Q2 growth rate in equipment spending and an $0.7 B inventory addition that left a five-year high accumulation rate of $113.5 B. Analysts now expect a flat August business inventory figure, given an assumed flat figure for wholesalers and a 0.4% rise for retailers. The factory inventory-to-sales (I/S) ratio rose back to its 1.35 cycle-high from 1.34 (was 1.35) in July but the same 1.35 through Q2, as also seen in January and February, as an inventory overhang continues to plague the factory sector.