· Factory
orders rose 0.5% last month following an upwardly revised unchanged
reading for September. The recovery was due to a 2.4% gain in nondurable
orders (which equal shipments) that primarily reflected an 8.3% jump in shipments from petroleum refineries.
· Durable goods orders fell 1.1%, revised from the advance report of a 0.4% drop. The advance report of a 3.3% decline in nondefense capital goods orders was revised to show a 3.9% decline and less aircraft, the decline was revised to -4.2% from -3.6%.
· Total shipments out of the US manufacturing sector reversed the prior month's decline with a 1.2% surge, but less petroleum & coal shipments recovered just half of the prior months 1.2% drop (+7.7% y/y). Shipments of computers & electronic products rose 2.8% (+9.4% y/y) after the 2.7% September decline but electrical equipment shipments only gained back 0.4% (4.6% y/y) of a 3.0% September skid.
· Factory inventory accumulation
picked up to 0.5% following a downwardly revised 0.1% September up tick,
however the inventory to sales ratio in the factory sector scaled back
to 1.24 due to the surge in shipments. Inventories of consumer durables
fell 0.1% (+9.7% y/y) after two months of strong accumulation.
· Unfilled orders rose 0.5% and the ratio of unfilled orders to shipments for durables added to the sharp gain in September. Supply bottlenecks also are indicated by the ISM's index of vendor delivery speed.