Global| Oct 02 2014U.S. Factory Sector Orders and Shipments Decline
by:Tom Moeller
|in:Economy in Brief
Summary
New orders to all manufacturers fell 10.1% (+4.1% y/y) during August following the 10.5% July jump. A 9.3% decline was expected in the Action Economics Forecast Survey. An 18.4% (+8.6% y/y) decline in durable goods orders led the [...]
New orders to all manufacturers fell 10.1% (+4.1% y/y) during August following the 10.5% July jump. A 9.3% decline was expected in the Action Economics Forecast Survey. An 18.4% (+8.6% y/y) decline in durable goods orders led the shortfall as it was generated by a 74.3% decline (+46.6% y/y) in nondefense aircraft & parts. That followed the 315.6% rise during July. Factory sector orders excluding transportation equipment slipped 0.1% (+2.8% y/y) after a 0.7% decline. Orders for nondurable goods (which equal shipments) declined 0.4% (+0.2% y/y) after a 0.8% drop. Shipments of apparel dropped 5.2% (+5.3% y/y and textile mill shipments fell 2.2% (+0.3% y/y). Petroleum shipments were off 1.4% (-5.5% y/y) but basic chemical shipments bumped up 0.2% (-0.6% y/y). Food product shipments also gained 0.1% (6.4% y/y).
Unfilled orders increased 0.6% (12.8% y/y). Excluding the transportation sector, order backlogs rose 0.7% (6.3% y/y). Backlogs of machinery increased 1.0% (12.1% y/y) while unfilled orders for computers & electronic products gained 0.9% (6.2% y/y). Electrical equipment backlogs rose 0.6% (10.6% y/y) and unfilled orders of furniture improved 1.2% (4.7% y/y).
Inventories in the factory sector ticked up 0.1% (3.7% y/y) after no change in July. In the durable goods sector, inventories rose 0.4% (6.3% y/y) led by a 0.8% increase (6.3% y/y) in primary metals. Electrical equipment inventories gained 0.8% (-0.1% y/y). Amongst nondurable goods industries inventories declined 0.3% (-0.3% y/y), off for the third straight month. Petroleum inventories dropped 1.8% (-4.2% y/y), basic chemicals were unchanged (-0.6% y/y) while apparel inventories slipped 0.1% (+25.0% y/y).
The factory sector figures are available in Haver's USECON database.
| Factory Sector- NAICS Classification (%) | Aug | Jul | Jun | Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| New Orders | -10.1 | 10.5 | 1.5 | 4.1 | 2.7 | 2.9 | 12.9 |
| Shipments | -1.0 | 1.4 | 0.8 | 3.1 | 2.0 | 4.0 | 12.1 |
| Inventories | 0.1 | 0.0 | 0.2 | 3.7 | 2.3 | 2.4 | 10.2 |
| Unfilled Orders | 0.6 | 5.3 | 1.0 | 12.8 | 7.0 | 3.7 | 10.0 |
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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