Global| Jul 06 2006U.S. Factory Inventory Accumulation Stalled in May
by:Tom Moeller
|in:Economy in Brief
Summary
Factory inventory accumulation stalled during May but that followed an upwardly revised 1.0% April increase. Despite the latest stall, the running rate of inventory accumulation this year matches the gains in 2005. Inventories of [...]
Factory inventory accumulation stalled during May but that followed an upwardly revised 1.0% April increase. Despite the latest stall, the running rate of inventory accumulation this year matches the gains in 2005.
Inventories of computers & electronic products fell 0.5% (+6.1% y/y) while inventories of electrical equipment dropped 0.3% (+6.5% y/y). Inventories of furniture & related products fell 0.3% (+4.6% y/y), the second down month, and primary metals inventories jumped 2.3% (4.0% y/y).
Total factory orders rose 0.7%, a gain led by a 1.6% jump in nondurables which reflected a 2.3% rise petroleum & coal. Less petroleum, nondurable goods orders (which equal shipments) rose 1.4% (3.1% y/y). Durable goods orders fell 0.2%, little revised from the advance report of a 0.3% slip.
Factory shipments surged 2.2% led higher by a 5.1% jump in transportation. Civilian aircraft shipments rose 19.8% (33.0% y/y). Less transportation shipments also were strong and rose 1.7% (7.7% y/y).
Unfilled orders rose another 0.6% led by a 1.5% (59.4% y/y) jump in civilian aircraft. Less the transportation sector altogether backlogs rose 0.9% (14.3% y/y).
| Factory Survey (NAICS) | May | April | Y/Y | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|---|
| Inventories | -0.0% | 1.0% | 3.9% | 4.0% | 6.9% | -7.4% |
| New Orders | 0.7% | -2.0% | 4.9% | 8.5% | 7.5% | 0.9% |
| Shipments | 2.2% | -0.1% | 7.2% | 7.1% | 6.8% | 0.2% |
| Unfilled Orders | 0.6% | 1.5% | 20.7% | 16.3% | 4.5% | -1.0% |
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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