Global| Nov 03 2016U.S. Factory Orders and Shipments Trend Higher
by:Tom Moeller
|in:Economy in Brief
Summary
Manufacturing sector orders improved 0.3% during September following a 0.4% increase in August, revised from 0.2%. Three month growth rose to 8.4%. New orders for durable goods declined 0.3% (+1.4% y/y), which was revised from the [...]
Manufacturing sector orders improved 0.3% during September following a 0.4% increase in August, revised from 0.2%. Three month growth rose to 8.4%. New orders for durable goods declined 0.3% (+1.4% y/y), which was revised from the advance report of a 0.1% easing. A 0.9% decline (+2.2% y/y) in orders for computers & electronic products was offset by a 1.1% rise (-6.1% y/y) in machinery orders. Orders for nondurable goods (which equal shipments) also offset the declines with a 0.9% increase (-0.1% y/y). Petroleum refinery shipments led the strength with a 4.6% jump (-5.0% y/y). Basic chemical shipments increased 0.8% (0.2% y/y). Food product shipments improved 0.1% (0.4% y/y). These gains were countered by a 1.8% decline (-2.9% y/y) in textile product shipments and a 2.0% drop (+3.4% y/y) in apparel shipments. Shipments of durable goods gained 0.8% (-1.1% y/y), led by a 2.2% recovery in transportation equipment shipments (-1.3% y/y).
Unfilled orders fell 0.4% (-1.6% y/y), the fourth consecutive monthly decline. It reflected a 0.6% drop (-2.6% y/y) in transportation sector backlogs. Offsetting the decline was a 1.8% rise (5.9% y/y) in unfilled orders in the furniture industry. Electrical equipment & appliance backlogs rose 0.3% (5.3% y/y), and unfilled orders for machinery ticked 0.1% higher (-6.1% y/y).
Inventories of manufactured products were little changed (-1.9% y/y) after a 0.1% rise. Transportation product inventories also remained unchanged (-1.3% y/y), while computer & electronic product inventories eased 0.2% (-0.1% y/y). To the upside, machinery inventories increased 0.4% (-3.1% y/y) and electrical equipment & appliance inventories rose 0.6% (-2.0% y/y).
The factory sector figures are available in Haver's USECON database.
| Factory Sector- NAICS Classification (%) | Sep | Aug | Jul | Sep Y/Y | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| New Orders | 0.3 | 0.4 | 1.4 | 0.6 | -6.3 | 1.8 | 2.0 |
| Shipments | 0.8 | 0.2 | -0.4 | -0.6 | -4.4 | 1.2 | 2.0 |
| Unfilled Orders | -0.4 | -0.2 | -0.2 | -1.6 | -2.4 | 8.8 | 5.8 |
| Inventories | -0.0 | 0.1 | 0.2 | -1.9 | -2.5 | 1.8 | 0.9 |
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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