May Factory Orders Preview
May Factory Orders are expected to post a 0.5% increase following a 1.1% rise in April. Shipments in May are expected to be unchanged following a 2.3% increase prior. Factory Inventories are expected to increase 0.6% which would leave the inventory-to-sales ratio at 1.24.
The previously published May Durable goods report revealed a flat reading for orders following a 1% decrease in April. Durable shipments were down 1.1% following a 1.8% increase in April, and durable inventories were up 0.4% over the month.
Thanks to higher energy costs, May non-durable goods orders should more than net out declines in the durable goods sector. Non-durable orders gained 2.8% in April, led higher by a 6.2% increase in petroleum orders.