Global| Sep 02 2016U.S. Factory Orders Improve; Shipments Decline
by:Tom Moeller
|in:Economy in Brief
Summary
Manufacturing sector orders increased 1.9% (-3.5% y/y) during July and reversed the prior month's 1.8% fall, revised from -1.5%. The rise reflected a 4.4% increase in orders for durable goods, which was unrevised from the advance [...]
Manufacturing sector orders increased 1.9% (-3.5% y/y) during July and reversed the prior month's 1.8% fall, revised from -1.5%. The rise reflected a 4.4% increase in orders for durable goods, which was unrevised from the advance report. A near-doubling of civilian aircraft orders paced durables' rise followed by a 20.9% jump in defense aircraft orders. Outside of transportation, orders gained 0.2% (-2.6% y/y). Computer orders rose 3.4% (3.1% y/y) and machinery bookings gained 1.4% (-5.5% y/y). Orders for nondurable goods, which equal shipments, eased 0.5% (-3.7% y/y). A 4.8% decline (-25.4% y/y) in petroleum shipments led the way lower. The value of textile product shipments improved 0.2% (-3.3% y/y) and apparel shipments gained 0.4% (6.7% y/y). Basic chemical product shipments fell 0.2% (+0.4% y/y).
Shipments of durable goods improved 0.1% (-2.3% y/y), held back by a 1.0% decline in (-7.7% y/y) in machinery shipments. This decline was offset by a 1.7% rise (3.9% y/y) in shipments of computers & electronic products. Shipments of electrical equipment & appliances also rose 0.7% (-7.2% y/y).
Unfilled orders eased 0.1% (-2.2% y/y). Outside of the transportation sector, order backlogs increased 0.3% (+0.1% y/y). Machinery backlogs gained 0.1% (-6.8% y/y), and transportation sector backlogs fell 0.3% (-3.2% y/y). Computer & electronic product unfilled orders rose 0.5% (5.7% y/y).
Inventories of manufactured products rose 0.1% (-2.9% y/y). Outside of transportation they also ticked 0.1% higher. Durable goods inventories rose 0.4% (-2.6% y/y). Transportation sector inventories gained 0.4% (-1.3% y/y) and electrical equipment inventories rose 0.9% (-2.8% y/y). Computer & electronic product inventories declined 0.5% (-2.2% y/y). Nondurable goods inventories eased 0.2% (-3.5% y/y) as the value of petroleum inventories fell 2.3% (-31.3% y/y) with lower prices. Basic chemical inventories gained 0.2% (0.7% y/y) and apparel inventories rose 0.3% (9.2% y/y).
The factory sector figures are available in Haver's USECON database. The expectations figure from the Action Economics Forecast Survey is available in AS1REPNA.
| Factory Sector- NAICS Classification (%) | Jul | Jun | May | Jul Y/Y | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| New Orders | 1.9 | -1.8 | -1.2 | -3.5 | -6.3 | 1.8 | 2.0 |
| Shipments | -0.2 | 0.6 | 0.1 | -3.0 | -4.4 | 1.2 | 2.0 |
| Unfilled Orders | -0.1 | -0.9 | 0.0 | -2.2 | -2.4 | 8.8 | 5.8t |
| Inventories | 0.1 | -0.0 | -0.1 | -2.9 | -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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