Global| Apr 02 2014U.S. Factory Inventories Rise With Transportation Sector Strength
by:Tom Moeller
|in:Economy in Brief
Summary
Inventories in the factory sector increased 0.7% (2.5% y/y). Transportation equipment inventories gained 1.6% (9.2% y/y) while excluding transportation, inventories rose 0.4% (1.0% y/y). Furniture inventories increased 0.8% (0.3% [...]
Inventories in the factory sector increased 0.7% (2.5% y/y). Transportation equipment inventories gained 1.6% (9.2% y/y) while excluding transportation, inventories rose 0.4% (1.0% y/y). Furniture inventories increased 0.8% (0.3% y/y). Electrical equipment inventories declined 0.6% (-1.4% y/y), off for the seventh month in the last eight. Amongst nondurable goods industries, inventories rose 0.4% (0.1% y/y). Apparel inventories jumped 2.1% (17.6% y/y) and petroleum inventories improved 0.6% (-0.3% y/y). Basic chemical inventories rose 0.4% (-1.0% y/y) but paper product inventories slipped 0.1% (-0.2% y/y).
Orders to all manufactures gained 1.6% (-0.6% y/y) following a 1.0% January decline, revised from -0.7%. Consensus expectations had been for a 1.2% increase. The gain was led by an unrevised 2.2% rise (0.1% y/y) in durable goods orders, led higher by a 13.4% strengthening (-18.4% y/y) in aircraft bookings. New orders excluding transportation gained 0.7% (-0.3% y/y). Orders for nondurable goods (which equal shipments) recovered 1.0% (-1.3% y/y) after a 0.7% January decline. The gain was paced by a 4.9% rebound (0.5% y/y) in textile products while shipments from oil refineries gained 2.0% (-7.2% y/y). Shipments of apparel increased 1.4% (2.4% y/y) but basic chemical shipments were unchanged (-0.7% y/y).
Unfilled orders improved 0.3% (6.4% y/y), but excluding the transportation sector, backlogs were unchanged (5.3% y/y). Backlogs in the machinery sector rose 0.7% (6.9% y/y) and unfilled orders for transportation equipment gained 0.4% (7.0% y/y). Backlogs of electrical equipment increased 0.2% (7.4% y/y). Unfilled orders of furniture declined 1.1% (+0.2% y/) and primary metals were off 0.2% (+11.2% y/y).
The factory sector figures are available in Haver's USECON database. The expectation figure is in AS1REPNA.
| Factory Sector- NAICS Classification | Feb | Jan | Dec | Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| New Orders | 1.6 | -1.0 | -2.0 | -0.6 | 2.7 | 2.9 | 12.9 |
| Shipments | 0.9 | -0.7 | -0.3 | 0.8 | 2.1 | 4.0 | 12.1 |
| Inventories | 0.7 | 0.2 | 0.5 | 2.5 | 2.3 | 2.4 | 10.2 |
| Unfilled Orders | 0.3 | 0.0 | 0.2 | 6.4 | 7.0 | 3.7 | 10.0 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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