Recent Updates

  • Hungary: Credit to Households and Nonfinancial Corporations (Aug)
  • US: Construction (Aug)
  • Markit: Mfg PMIs: Australia, ASEAN, Thailand, Vietnam, Malaysia, Taiwan, Myanmar, Philippines, Indonesia, Russia, Kazakhstan, Poland,
  • more updates...

Economy in Brief

U.S. New and Unfilled Factory Orders Rise Sharply
by Tom Moeller  July 2, 2013

Orders to all manufacturers increased an expected 2.1% (3.6% y/y) during May, following a 1.3% April advance. The rise was led by a 3.7% jump (7.7% y/y) in durable goods bookings, little-revised from the advance report. It reflected a one-third m/m jump in orders for commercial aircraft & parts. Nondurable goods orders, which equal shipments, rose 0.7% (0.2% y/y) following two months of sharp decline. Shipments from petroleum refineries rose 1.3% (-1.0% y/y) as prices improved. Shipments of basic chemicals increased 1.0% (-0.2% y/y). The value of apparel shipments slipped 0.3% (+4.9% y/y) and shipments of paper products also edged down 0.3% (-2.1% y/y).

The greater strength in new orders versus shipments generated a rise in unfilled orders. Backlogs rose 0.8% during May and have risen 3.1% during the last twelve months. The rise has been led by a 5.7% y/y increase in transportation equipment, mostly for commercial aircraft. Excluding the transportation sector altogether, unfilled orders fell 0.8% y/y. Unfilled machinery orders fell 11.7% y/y and electrical equipment backlogs were down 1.2% y/y. Backlogs of computers & electronic products went the other way and rose 3.6% y/y.

Inventories in the factory sector were unchanged in May (2.2% y/y) following little change during the prior two months. Apparel inventories rose 0.3% (12.9% y/y) but chemical inventories were off 0.6% (+3.9% y/y). In the durable goods sector, inventories ticked up 0.1% (3.0% y/y). Transportation sector inventories were little changed m/m (9.7% y/y) reflecting a 16.1% y/y jump in aircraft & parts. Electrical equipment & appliance inventories rose 1.9% y/y and machinery stockpiles gained 0.7% y/y.

The factory sector figures are available in Haver's USECON database. The expectation figure is in AS1REPNA


Factory Sector- NAICS Classification May Apr Mar Y/Y 2012 2011 2010
New Orders 2.1 1.3 -4.7 3.6 2.9 12.9 16.3
Shipments 1.0 -0.7 -1.5 1.3 4.0 12.1 11.0
Inventories 0.0 0.1 0.0 2.2 2.4 10.2 9.8
Unfilled Orders 0.8 0.3 -0.6 3.1 3.7 10.0 5.4
large image