Global| Apr 03 2012U.S. Factory Orders Recover Along With Backlogs
by:Tom Moeller
|in:Economy in Brief
Summary
Orders in the manufacturing sector recovered 1.3% (9.0% y/y) during February and reversed a little-revised 1.1% January slump. The rise reflected a 2.4% gain in orders for durable goods. That was little-changed from the advance report [...]
Orders in the manufacturing sector recovered 1.3% (9.0% y/y) during February and reversed a little-revised 1.1% January slump. The rise reflected a 2.4% gain in orders for durable goods. That was little-changed from the advance report of a 2.2% increase reported last week. In the nondurable goods sector, where orders equal shipments, petroleum shipments led the advance with a 3.0% (12.5% y/y) rise with higher prices. Basic chemicals also rose 0.4% (4.7% y/y). Elsewhere, shipments were weak. Apparel shipments declined 2.1% (+15.7% y/y) and paper products slipped 0.2% (-3.1% y/y). Shipments of food products were down 3.0% (+2.1% y/y).
Unfilled orders rose a faster 1.3% (10.6% y/y) as shipments lagged the orders gain with a 0.1% (7.1% y/y) uptick. Much of the backlog rise reflected a 2.0% (25.5% y/y) increase in machinery and a 1.6% gain (11.2% y/y) in transportation equipment. Shipments from the nondurables sector rose 0.4% (6.2% y/y) but durable goods shipments fell 0.4% (+8.3% y/y)
Inventories in the factory sector increased another 0.4% (7.9% y/y) during February as durable goods inventories rose 0.4% (9.4% y/y). Nondurables inventories rose 0.3% (5.5% y/y) reflecting a 2.0% (14.4% y/y) jump in oil. Elsewhere inventories were little-changed.
The factory sector figures are available in Haver's USECON database. The expectation figure is in AS1REPNA.
| Factory Sector - NAICS Classification (%) | Feb | Jan | Dec | Y/Y | 2011 | 2010 | 2009 |
|---|---|---|---|---|---|---|---|
| Orders | 1.3 | -1.1 | 1.4 | 9.0 | 12.2 | 12.9 | -21.7 |
| Shipments | 0.1 | 0.6 | 0.8 | 7.1 | 11.3 | 8.6 | -18.5 |
| Inventories | 0.4 | 0.6 | 0.2 | 7.9 | 9.5 | 8.7 | -6.8 |
| Unfilled Orders | 1.3 | 0.7 | 1.5 | 10.6 | 9.7 | 3.9 | -15.2 |
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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