Global| Oct 03 2011U.S. Factory Orders Slip
by:Tom Moeller
|in:Economy in Brief
Summary
Manufacturing orders slipped 0.2% last month, about as expected. That followed a downwardly revised 2.1% July gain, revised from 2.4%. For durable goods only orders slipped 0.1%, unchanged from the advance report. Nondurable goods [...]
Manufacturing orders slipped 0.2% last month, about as expected. That followed a downwardly revised 2.1% July gain, revised from 2.4%. For durable goods only orders slipped 0.1%, unchanged from the advance report. Nondurable goods orders, which equal shipments, slipped 0.3% (15.6% y/y). Petroleum shipments fell 2.5% (+40.2% y/y), and reversed the July increase as prices dropped. Offsetting that decline was a 4.3% rise in shipments of apparel (7.6% y/y).
Inventories in the factory sector rose 0.4% (12.9% y/y) during August following an upwardly revised 0.6% July gain. Durable goods inventories rose 0.9% (13.1% y/y) with continued strength in machinery, transportation and metals. Nondurables inventories fell another 0.4% (+12.8% y/y) due to a 3.4% drop (+37.9% y/y) in oil refineries. Apparel inventories jumped 1.5% (18.7% y/y) and basic chemicals rose 0.6% (9.4% y/y).
Growth in unfilled orders increased another 0.9%. The moderate 8.1% y/y gain again was powered by a 13.0% rise in backlogs less the transportation sector. It was led by a one-third rise in backlogs of machinery and an 18.4% gain in electrical equipment, appliances & components. Transportation industry backlogs rose 1.2% and 4.9% y/y.
The factory sector figures are available in Haver's USECON database. The expectation figure is in AS1REPNA.
Economic Outlook and Recent Monetary Action is today's Congressional testimony by Fed Chairman Ben S. Bernanke and it can be found here.
| Factory Sector - NAICS Classification (%) | Aug | Jul | Jun | Y/Y | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Orders | -0.2 | 2.1 | -0.4 | 14.1 | 12.9 | -21.7 | 0.5 |
| Shipments | -0.2 | 1.2 | 0.6 | 12.1 | 8.6 | -18.5 | 2.3 |
| Inventories | 0.4 | 0.6 | 0.4 | 12.9 | 8.7 | -6.8 | -2.1 |
| Unfilled Orders | 0.9 | 0.9 | 0.3 | 8.1 | 3.9 | -15.2 | 4.3 |
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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