Need To Know News

The value of new orders for manufacturers rose 1.3% in July, the fifth consecutive monthly increase, which was better than the 1% increase expected and following an upwardly revised 2.1% increase in June. Orders rose $5.9bln to its highest total on record at $465.4bln.

New Orders Ex-Transports rose 1% in July following an upwardly revised 2.7% increase in June. New Orders Ex-Transports are up for a fifth consecutive month and have increased nine of the last eleven months. New Orders Ex-Defense rose 2%, its fifth consecutive monthly increase, following an upwardly revised 1.8% increase in June.

Durable Goods Orders in July rose 1.3%, its third consecutive monthly increase, following an upwardly revised 1.4% increase in June. Durable Goods Ex-Transports increased for the fourth time in five months at 0.7% in July following an upwardly revised 2.6% increase in June. Durables Ex-Defense rose 2.9% following an upwardly revised 0.7% June increase. July Durable Goods Orders were led higher by a 2.4% increase in Primary Metals and a 4.1% increase in Machinery.

Non-Durable New Orders Rose 1.2% in July following a 2.8% increase in June. July Shipments rose 2.1%, with Durable Goods Shipments up 3%. The Value of Unfilled Orders Rose 0.7% in July and Total Inventories rose 0.5% with Durable Goods Inventories up 0.8%. New Orders for Defense Capital Goods fell 26.6% in July.

The upward revision to the June data and the generally better than expected July Factory Goods data may provide a bright spot for an otherwise stumbling economy.

• July Factory Orders are expected to increase 1% following a 1.9% increase in June
• Factory Shipments are expected to increase 1.4% following a 1.8% June increase
• Factory Inventories are expected to increase 0.6% following a 1.2% increase in June
• Inventory-to-Sales ratio expected at 1.22 from 1.23 in June

Few revisions are expected to the July Durable Goods report, which said:

- July Durable Goods Orders increased 1.3%, Non-Defense Capital Goods Orders increased 6.3%
- July Durable Shipments increased 2.5%, Non-Defense Capital Goods Shipments increased 1.6%
- July Durable Inventories increased 0.8%

Non-Durable Orders surged 2.5% in June, led by a 5.7% increase in Petroleum orders. Upside risks exist in inventory valuation adjustment (IVA) as energy prices remained elevated over the period.

• July Factory Orders are expected to increase 1% following a 1.9% increase in June
• Factory Shipments are expected to increase 1.4% following a 1.8% June increase
• Factory Inventories are expected to increase 0.6% following a 1.2% increase in June
• Inventory-to-Sales ratio expected at 1.22 from 1.23 in June

Few revisions are expected to the July Durable Goods report, which said:

- July Durable Goods Orders increased 1.3%, Non-Defense Capital Goods Orders increased 6.3%
- July Durable Shipments increased 2.5%, Non-Defense Capital Goods Shipments increased 1.6%
- July Durable Inventories increased 0.8%

Non-Durable Orders surged 2.5% in June, led by a 5.7% increase in Petroleum orders. Upside risks exist in inventory valuation adjustment (IVA) as energy prices remained elevated over the period.

The value of new orders from manufacturers rose 1.7% in June, much higher than the 0.7% expected, and above the upwardly revised 0.9% gain in May (previously reported as 0.6%).

Excluding transports, new orders rose 2.3%, their 4th consecutive rise and also beating expectations. Ex-defense orders increased 1.4%.

Durable goods orders were up 0.8%, with orders for primary metals (up 5.2%) and electrical equipment (up 4.6%) outweighing the 2.7% decrease in transportation equipment. New orders for nondefense capital goods were down 3.3%, but ex-aircraft, the category was up 1.2%.

Nondurable goods orders rose 2.5% in June following an upwardly revised 1.7% reading prior.

Total inventories were up 1%, with durable goods inventories increasing 0.5%. Shipments were 1.6% while unfilled orders rose 0.9%.

Y-o-Y, new orders were up 5.8%, but durable goods orders were down 0.4%. New orders for nondefense capital goods excluding aircraft rose 3.6%.

June Factory Orders, released at 10:00am EDT, are expected to increase 0.7% following a 0.6% increase in May. Shipments are expected to gain 0.8% following a flat reading in May. Inventories are expected to increase 0.5% following a 1% increase prior, which would push the inventory-to-sales ratio to 1.24 from 1.23.

The June Factory Orders data will receive a strong boost from the durable goods sector, as the June Durable Goods report revealed a 0.7% increase in durable orders and a 0.5% increase in durable shipments.

The non-durable sector should also bolster June Factory Orders report, as the combination of government stimulus checks and rising energy prices should yield higher sales and fuel inventories.

June Factory Orders are expected to increase 0.7% following a 0.6% increase in May. Shipments are expected to gain 0.8% following a flat reading in May. Inventories are expected to increase 0.5% following a 1% increase prior, which would push the inventory-to-sales ratio to 1.24 from 1.23.

The June Factory Orders data will receive a strong boost from the durable goods sector, as the June Durable Goods report revealed a 0.7% increase in durable orders and a 0.5% increase in durable shipments.

The non-durable sector should also bolster June Factory Orders report, as the combination of government stimulus checks and rising energy prices should yield higher sales and fuel inventories.

The value of new orders from manufacturers rose 0.6% in May ,just above expectations but below the upwardly revised 1.3% gain in April (previously reported as 1.1%).

Excluding transportation equipment, new orders rose 0.4%, their 3rd consecutive rise. New orders for nondefense goods rose 0.3%.

Durable goods orders were flat, with increased computer orders netting out large declines in construction machinery, mining and oil field machinery, and ventilation equipment. Transportation equipment orders were up 2.5% with nondefense and defense aircraft and parts leading the way. New orders for nondefense capital goods were up 0.7%, while defense capital goods leapt 12%..

Nondurable goods orders rose 1.2% in May, following a 3.5% gain the prior month and again driven by higher prices of petroleum and food products, as well as a 5% jump in pesticides and fertilizers.

The value of overall inventories was up 0.5% from April, with durable goods inventories up 0.4%, boosted by a 2.5% increase in auto inventories. Shipments edged up 0.1% with shipments of durable goods falling back into negative territory, down 1.1% on the month.

On a y-o-y basis new orders were up 5.5%, durable goods orders were down 0.2%, and new orders for nondefense capital goods excluding aircraft were 0.4% lower.

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.

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.

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%.