APRIL FACTORY ORDERS UP 1.1%, EX-TRANSPORTATION UP 2.6%
The value of new orders from manufacturers rose 1.1% in April, well above what analysts had expected. Excluding transportation equipment new orders rose 2.6%. New orders for nondefense goods rose 1.3%.
Durable goods orders were down 0.6% – a slightly larger decline than in the advance numbers released last week – on large declines in machinery, computers and electronic components. Transportation equipment orders fell 7.9% with motor vehicles, aircraft and ship orders down. There were large gains in orders for mining and oil field equipment and electrical components.
Nondurable goods orders rose 2.8% in April. Much of that increase was driven by higher prices of petroleum and food products but pharmaceuticals, paints and paper also showed gains.
New orders for nondefense capital goods fell 1.5% due to the large decline in aircraft orders. Excluding those, the series was up 4%, the first increase since the beginning of the year. This is often an early indicator of capital spending by businesses.
The value of overall inventories was unchanged from March to April but durable goods inventories rose 0.6%, despite an 11% drop in auto inventories. Shipments rose 2.2% with shipments of durable goods up 1.6% after 2 months of declines.
On a y-o-y basis new orders are up 5.7%, durable goods orders are up 0.6%, and new orders for nondefense capital goods excluding aircraft are up 3.8%.