Local transform appears to move objects in an unexpected direction when dealing with groups

Local transform appears to move objects in an unexpected direction when dealing with groups after the group has been duplicated.

1. Open the first person template
2. Drag a static mesh into the level
3. Alt drag to create two more copies of the mesh (attached image for reference)
4. Rotate the first mesh 90 degrees along the z axis
5. Rotate the second mesh 90 degrees along the y axis
6. Select the meshes in reverse order until all three are highlighted (C then B then A if you look at the attached image)
7. Change to local space
8. Alt+Drag to duplicate the meshes
9. Notice that if you grab the Y axis to move the meshes that it moves perpendicular to what you would expected

Expected: When duplicating and dragging static meshes they would move along the selected axis
Result: The meshes are moved perpendicular to the selected axis