Global| Aug 03 2006U.S. Factory Inventory Accumulation Strong
by:Tom Moeller
|in:Economy in Brief
Summary
Factory inventories rose 0.8% during June for the fifth month of firm accumulation this year. Year to date inventories have risen at a 7.8% annual rate, nearly double the rate of accumulation during all of last year. Primary metals [...]
Factory inventories rose 0.8% during June for the fifth month of firm accumulation this year. Year to date inventories have risen at a 7.8% annual rate, nearly double the rate of accumulation during all of last year.
Primary metals inventories rose 0.8% (6.2% y/y) and have been rising at a 17.2% annual rate so far this year. Inventories of computers & electronic products rose 0.4% (8.4% y/y) and the year to date annual rate of accumulation has been 9.2%. Inventories of electrical equipment jumped 2.2% (9.3% y/y) but machinery inventories ticked up just 0.1% (5.7% y/y).
Total factory orders surged 1.2%. Durable goods orders jumped 2.9% that was little revised from the advance report of a 3.1% gain. Factory orders less transportation rose just 0.1% (7.8% y/y) due to a 0.7% drop in nondurables.
Factory shipments fell 0.3%. Less transportation shipments also fell 0.2% (8.0% y/y). Petroleum shipments fell 0.2% (+20.9% y/y) and factory shipments less transportation & petroleum slipped 0.2% (+6.7% y/y).
Unfilled orders increased another 1.6% but less the transportation sector altogether backlogs still rose a strong 1.4% (14.2% y/y).
| Factory Survey (NAICS) | June | May | Y/Y | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|---|
| Inventories | 0.8% | 0.7% | 5.5% | 4.0% | 6.9% | -7.4% |
| New Orders | 1.2% | 1.0% | 6.0% | 8.5% | 7.5% | 0.9% |
| Shipments | -0.3% | 2.5% | 7.5% | 7.1% | 6.8% | 0.2% |
| Unfilled Orders | 1.6% | 0.7% | 19.3% | 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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