Global| Jun 05 2017U.S. Factory Orders Slip
by:Tom Moeller
|in:Economy in Brief
Summary
Manufacturing sector orders eased 0.2% (+2.9% y/y) following a 1.0% gain, revised from 0.2%. Earlier figures were revised. Durable goods orders declined 0.8% (-0.1% y/y), revised from the advance report of a 0.7% fall. Transportation [...]
Manufacturing sector orders eased 0.2% (+2.9% y/y) following a 1.0% gain, revised from 0.2%. Earlier figures were revised. Durable goods orders declined 0.8% (-0.1% y/y), revised from the advance report of a 0.7% fall. Transportation sector orders declined 1.4% (-6.8% y/y). Orders outside of the transportation sector ticked 0.1% higher (4.9% y/y). Bookings for computers & electronic products jumped 1.6% (1.1% y/y). Machinery orders fell 0.7% (+4.6% y/y), while electrical equipment orders declined 2.0% (+0.1 y/y).
Total factory sector shipments held steady (3.1% y/y). Durable goods shipments fell 0.4% (+0.3% y/y). Transportation equipment shipments declined 0.7% (-3.9% y/y). Nondefense aircraft shipments fell 2.9% (-9.9% y/y). Defense aircraft & parts shipments fell 4.4% (+14.6% y/y). Excluding the transportation sector, shipments improved 0.2% (+4.5% y/y). Shipments of machinery increased 0.2% (1.1% y/y) and computer & electronic product shipments held fairly steady (2.9% y/y).
Nondurable goods shipments (which equal orders) improved 0.4% (6.0% y/y). Petroleum refinery shipments rose 0.3% (32.2% y/y). Basic chemical shipments gained 0.3% (1.3% y/y) and textile mill shipments recovered 0.4% (3.0% y/y). Food product shipments jumped 1.1% (6.2% y/y) but paper product shipments declined 1.1% (-0.8% y/y).
Unfilled orders rose 0.2% (-1.4% y/y), but continued the weak trend in place since 2015. Backlogs in the transportation sector rose 0.2% (-3.1% y/y). Outside of the transportation sector, unfilled orders improved 0.3% (2.9% y/y). Electrical equipment & appliance backlogs increased 0.3% (12.6% y/y) and computer & electronic product backlogs inched 0.1% higher (3.9% y/y). Unfilled orders for machinery were fairly steady (-0.2% y/y).
Inventories at the factory level nudged 0.1% higher (2.5% y/y) in April. Outside of the transportation sector, inventories also improve 0.1% (3.7% y/y). Durable goods inventories gained 0.2% (1.2% y/y). Fabricated metals inventories rose 0.5% (1 .8% y/y). Machinery inventories increased 0.2% (2.6% y/y), while inventories of computers & electronic products rose 0.2% (1.5% y/y). Nondurable goods inventories eased 0.1% (+4.5% y/y) as basic chemical inventories eased 0.1% (+2.7% y/y) and apparel inventories fell 0.4% (-5.4% y/y).
The factory sector figures are available in Haver's USECON database.
| Factory Sector- NAICS Classification (%) | Apr | Mar | Feb | Apr Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| New Orders | -0.2 | 1.0 | 0.8 | 2.9 | -1.9 | -7.7 | 1.8 |
| Shipments | 0.0 | -0.2 | 0.3 | 3.1 | -1.8 | -5.8 | 1.3 |
| Unfilled Orders | 0.2 | 0.3 | -0.2 | -1.4 | -1.9 | -2.0 | 8.4 |
| Inventories | 0.1 | 0.2 | 0.2 | 2.5 | 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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