U.S. Factory Orders Boosted Again by Durables

Manufacturing sector orders increased 1.0% (7.3% y/y) during February following a 1.5% January increase, revised from 1.2%. Durable goods orders increased 1.8% (5.3% y/y), revised from the advance report of a 1.7% increase. Transportation sector orders gained 4.4% (6.0% y/y) with a jump in nondefense aircraft & parts, but defense aircraft & parts orders eased. Total factory sector orders excluding defense improved 1.2% (6.9% y/y) following a 1.4% gain. Orders outside of the transportation sector gained 0.4% (7.5% y/y). Bookings for computers & electronic products inched 0.1% higher (5.7% y/y). Machinery orders improved 0.3% (5.4% y/y), while electrical equipment orders strengthened 1.9% (2.6% y/y).

Total factory sector shipments gained 0.3% (5.9% y/y), the same as in January. Durable goods shipments improved 0.3% (5.9% y/y). Transportation equipment shipments eased 0.3% (-0.6% y/y), as auto shipments declined 6.4% (-21.3% y/y). Nondefense aircraft shipments fell 4.6% (-4.9% y/y). but defense aircraft & parts shipments increased 10.0% (-1.7% y/y). Shipments of machinery increased 1.1% (2.0% y/y), and computer & electronic product shipments rose 0.1% (6.7% y/y).

Nondurable goods shipments (which equal orders) improved 0.2% (9.2% y/y). Petroleum refinery shipments eased 1.2% (+47.2% y/y). Basic chemical shipments increased 1.1% (3.8% y/y), and textile mill shipments rose 1.3% (6.3% y/y) after four months of strong gains. Food product shipments posted a 0.2% rise (4.2% y/y). Paper product shipments added 0.3% (1.3% y/y).

Unfilled orders remained unchanged (-1.3% y/y), continuing the weak trend of the last year. Transportation sector backlogs eased 0.1% (-3.1% y/y). Outside of the transportation sector, unfilled orders improved 0.3% (2.6% y/y). Electrical equipment & appliance backlogs increased 0.6% (8.9% y/y) and computer & electronic product backlogs rose 0.4% (4.9% y/y). Unfilled orders for machinery improved 0.4% (-2.5% y/y).

Inventories in the factory sector increased 0.2% (1.3% y/y) in February. Outside of the transportation sector, inventories rose 0.2% (2.2% y/y). Durable goods inventories gained 0.2% (-0.1% y/y), but fabricated metals inventories improved 0.4% (0.6% y/y). Machinery inventories rose 0.2% (-0.6% y/y), while inventories of computers & electronic products increased 0.3% (1.4% y/y). Electrical equipment inventories increased 0.4% (1.4% y/y).

The factory sector figures are available in Haver's USECON database.