Global| Aug 04 2015U.S. Factory Sector Orders Ease
by:Tom Moeller
|in:Economy in Brief
Summary
New orders in the manufacturing sector increased 1.8% during June (-6.2% y/y) following a 1.1% May decline. The rise roughly matched expectations in the Action Economics Forecast Survey. Durable goods orders rose 3.4% (-3.0% y/y) [...]
New orders in the manufacturing sector increased 1.8% during June (-6.2% y/y) following a 1.1% May decline. The rise roughly matched expectations in the Action Economics Forecast Survey. Durable goods orders rose 3.4% (-3.0% y/y) following 2.3% decline. These figures were unchanged from the advance release. A roughly two-thirds increase in nondefense aircraft bookings (11.2% y/y) powered the rise. Orders excluding the transportation sector altogether rose 0.5% (-6.2% y/y) after a 0.1% dip. Nondurable goods orders (which equal shipments) improved 0.4% (-8.0% y/y) following no change. Petroleum refinery shipments gained 1.7% (-28.4% y/y) after a 2.4% increase. Food products shipments eased (-0.9% y/y) for the sixth straight month. Apparel shipments gained 0.4% (0.3% y/y) following a 0.9% jump and paper product shipments fell 0.9% (-2.1% y/y) after a 1.1% decline. Basic chemical shipments improved 0.4% (-0.9% y/y) and reversed the May decline. Shipments of durable goods improved 0.5% (3.5% y/y) after they declined during four of the prior five months.
Unfilled orders remained unchanged (4.6% y/y), also following declines in four of the prior five months. Backlogs excluding the transportation sector eased 0.1% (0.6% y/y). Unfilled orders of nondefense aircraft rose 0.5% (11.3% y/y).
Inventories in the factory sector rose 0.6% (-0.1% y/y) following a 0.1% uptick. Durable goods inventories increased 0.6% (4.0% y/y). Computes & electronic product inventories gained 0.7% (4.7% y/y) following a 0.3% easing. Nondurable goods inventories gained 0.4% (-5.9% y/y) as petroleum refinery inventories rose 2.4% (-28.7% y/y). Food product inventories fell 0.4% (-1.5% y/y) and reversed May's rise. Apparel inventories rose 0.2% (13.7% y/y) after 1-to-2 percent increases in the prior two months. Paper product inventories gained 0.5% (2.4% y/y). Basic chemical inventories improved 0.1% (-2.8% y/y) following seven consecutive months of decline.
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 (%) | Jun | May | Apr | Y/Y | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| New Orders | 1.8 | -1.1 | -0.7 | -6.2 | 3.4 | 2.2 | 4.4 |
| Shipments | 0.5 | -0.2 | -0.0 | -3.9 | 2.5 | 2.1 | 4.4 |
| Unfilled Orders | 0.0 | -0.5 | -0.2 | 4.6s | 11.4 | 6.4 | 7.5 |
| Inventories | 0.6 | 0.1 | 0.2 | -0.1 | 2.4 | 1.7 | 3.8 |
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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