U.S. Factory Orders & Shipments Rise Modestly in April
by:Tom Moeller
|in:Economy in Brief
Summary
- Durable & nondurable goods orders are mixed.
- Shipments increase slows.
- Unfilled orders & inventories continue to rise.
Manufacturers' new orders rose 0.3% (14.0% y/y) during April following a 1.8% March rise, revised from a 2.2% increase reported initially. A 0.6% rise had been expected in the Action Economics Forecast Survey. Orders excluding transportation increased 0.3% (12.4% y/y) after strengthening 2.2% in March.
Durable goods orders rose 0.5% in April (12.2% y/y), revised from 0.4% in the advance report. The gain followed a 0.7% March rise. Machinery orders increased 1.0% (9.9% y/y) after rising 0.6% in March. Orders for computers and electronic equipment rose 0.1% (4.3% y/y) after rising 1.8% in March while electrical equipment & appliance orders fell 0.2% (+11.6% y/y) after a 2.6% rise.
New orders for nondurable goods, which equal shipments, improved 0.2% (15.8% y/y) in April following a 2.9% March increase. Shipments from petroleum refineries eased 0.5% (+63.4% y/y) despite higher prices. Apparel shipments gained 0.3% (5.3% y/y) after rising 2.3% in March. Shipments of basic chemicals fell 0.3% (+7.8% y/y) after five months of modest increase.
Total shipments edged 0.2% higher (14.0% y/y) in April after a 2.2% March rise. Shipments excluding transportation rose 0.2% (13.8% y/y) after improving roughly 1.5% in each of the prior three months. Durable goods shipments rose 0.1% (12.2% y/y) after a 1.4% gain. Transportation equipment shipments held steady (15.3% y/y) after they rose 2.6% In March. Machinery shipments increased 0.3% last month (14.2% y/y) after rising 0.9%. Shipments of computers & electronic products improved 0.5% (3.9% y/y) after easing 0.3% in March.
Unfilled orders increased 0.5% in April (7.8% y/y) after a 0.5% rise in March. Excluding transportation, unfilled orders gained 0.4% (9.3% y/y) following a 0.3% rise in March. Transportation backlogs increased 0.7% (6.8% y/y) while unfilled orders of machinery rose 0.6% (12.4% y/y).
Inventories of manufactured goods rose 0.6% in April (10.7% y/y). Transportation equipment inventories rose 0.7% (4.8% y/y) while excluding transportation, inventories gained 0.5% (12.2% y/y) after a 1.5% March rise.
The factory sector data are available in Haver's USECON database. The Action Economics Forecast Survey is in the AS1REPNA database.
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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