Global| Jul 05 2017U.S. Factory Orders Decline Again
by:Tom Moeller
|in:Economy in Brief
Summary
Manufacturing sector orders fell 0.8% during May (+6.0% y/y) following a 0.3% April decline, revised from -0.2%. Durable goods orders were off 0.8% (+5.7% y/y), revised from -1.1% in the advance report. Transportation sector orders [...]
Manufacturing sector orders fell 0.8% during May (+6.0% y/y) following a 0.3% April decline, revised from -0.2%. Durable goods orders were off 0.8% (+5.7% y/y), revised from -1.1% in the advance report. Transportation sector orders declined 3.0% (+1.7% y/y). Orders outside of the transportation sector eased 0.3% (+6.8% y/y). Computer & electronic product orders slipped 0.2% (-0.4% y/y). Machinery orders increased 1.1% (12.9% y/y), while electrical equipment orders rose 1.0% (4.4% y/y).
Total factory sector shipments improved 0.1% (3.1% y/y) and have been little changed so far this year. Durable goods shipments increased 1.0% (6.6% y/y). Transportation equipment shipments improved 2.3% (5.8% y/y). Auto shipments improved 0.4% (-3.0% y/y) while light truck shipments increased 4.5% (14.8% y/y). Nondefense aircraft shipments strengthened 4.9% (-6.7% y/y). Excluding the transportation sector, shipments fell 0.3% (+6.6% y/y). Shipments of machinery ticked 0.1% higher (7.0% y/y) and computer & electronic product shipments also rose 0.1% (4.2% y/y).
Nondurable goods shipments (which equal orders) fell 0.8% (+6.3% y/y). The value of petroleum refinery shipments declined 3.4% (+19.4% y/y) with lower prices. Basic chemical shipments fell 1.0% (+3.7% y/y), but textile product shipments rose 1.2% (4.0% y/y). Shipments of apparel gained 2.2% (6.5% y/y) and food product shipments held steady (6.2% y/y).
Unfilled orders fell 0.2% (-1.4% y/y) and continued the weak trend in place since 2015. Backlogs in the transportation sector slipped 0.4% (-3.5% y/y). Outside of the transportation sector, unfilled orders improved 0.3% (3.2% y/y). Electrical equipment & appliance backlogs increased 0.7% (13.0% y/y) and computer & electronic product backlogs inched 0.1% higher (3.2% y/y). Unfilled orders for machinery increased 0.4% (1.8% y/y).
Inventories at the factory level eased 0.1% (+2.2% y/y) in May. Outside of the transportation sector, inventories also slipped 0.1% (+3.2% y/y). Durable goods inventories gained 0.2% (1.7% y/y). Fabricated metals inventories rose 0.4% (2.1% y/y). Machinery inventories inched 0.1% higher (3.7% y/y), while inventories of computers & electronic products rose 0.4% (2.0% y/y). Nondurable goods inventories declined 0.5% (+3.0% y/y) as apparel inventories fell 1.4% (-7.0% y/y).
The factory sector figures are available in Haver's USECON database.
| Factory Sector- NAICS Classification (%) | May | Apr | Mar | May Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| New Orders | -0.8 | -0.3 | 1.0 | 6.0 | -1.9 | -7.7 | 1.8 |
| Shipments | 0.1 | 0.0 | -0.2 | 3.1 | -1.8 | -5.8 | 1.3 |
| Unfilled Orders | -0.2 | 0.2 | 0.3 | -1.4 | -1.9 | -2.0 | 8.4 |
| Inventories | -0.1 | 0.0 | 0.2 | 2.2 | 0.7 | 0.0 | 1.7 |
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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