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Factory Orders Report


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The rebound in factory orders in December was driven by a 16.9% jump in bookings for transportation equipment, which followed a 5.2% drop in November. Transportation equipment orders were boosted by a 115.5% surge in orders for civilian aircraft. Core durable goods orders refers to new orders for U.S. core durable goods, which are the total durable goods orders excluding transportation equipment.

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Also the factory orders reports gives more detailed information than the durable goods orders report. Normally, strong economic data should be good news for investors. But this year, money managers have seen a tight labor market as proof that the Fed will have to keep raising rates to slow down the economy. The Factory Orders Report is useful for projecting future economic output levels and is used to actually estimate the GDP itself. Non-durable manufacturing industries may move as a group when this report is released because of investor activity. The savvy ones who have money in these stocks will have studied data, looking for clues on upcoming earnings levels, and will have reacted aggressively.

  • Excluding transportation, an often volatile segment, factory orders declined 0.8% from October.
  • The survey is usually released a week after durable goods orders report.
  • This latest report shows a decrease in the contraction of the manufacturing sector and reported similar improvement in the Asian and European markets.
  • Overall transportation equipment orders increased by $15.5 billion to $108.1 billion in December.

Factory order data is often mundane, mostly because the report of durable goods orders comes out a couple of weeks earlier and includes orders for capital goods, a proxy for equipment investment. Factory orders report is compiled from results of “Manufacturers’ Shipments, Inventories, and Orders survey” and shows the value of new factory orders for both durable (50% of total orders) and non-durable goods. The survey is usually released a week after durable goods orders report. Orders excluding the volatile transportation category rose 0.6 percent after advancing 0.7 percent in February. Bloomberg Surveillance Bloomberg Surveillance with Tom Keene, Jonathan Ferro & Lisa Abramowicz live from New York, bringing insight on global markets and the top business stories of the day.


This goverment index measures the dollar volume of orders, shipments, and unfilled orders of durable goods. Factory orders are released monthly in a report by the Census Bureau of the U.S. The full name of the report is “Full Report on Manufacturers’ Shipments, Inventories and Orders ,” but it is more commonly known as Factory Orders.


It already expects the un rate, which has hovered around 3.7% recently, to rise this year as economic conditions weaken. The Commerce Department said on Friday new orders for manufactured goods increased 1.1 percent. February’s orders were revised to show a 1.5 percent rise instead of the previously reported 1.6 percent gain. As with other indicators that monitor manufacturing and production, equity markets will be positively affected when the factory orders reports an increase in production.

U.S. Factory Orders Dropped Sharply in November

Bureau of the Census at the United States Department of Commerce release this report once a month in the first week of the month. There were moderate gains in orders for machinery, computer and electronic products as well as electrical equipment, instruments and components. The Federal Reserve’s sharpest interest-rate-hike cycle since the 1980s as it battles inflation is slowing demand for goods, which are typically bought on credit. As the country moves toward the post-pandemic era, Americans are also shifting spending from goods to services. WASHINGTON – New orders for US-made goods fell more than expected in November amid a sharp drop in bookings for aircraft, while higher borrowing costs cooled demand for other goods. Business surveys show U.S. factory activity declined in December, the Institute for Supply Management and S&P Global both said this week.

New orders and shipments are expected to rise somewhat, and delivery times are expected to shorten further. The capital spending index edged down to 18.3, and the technology spending index fell to 10.1. The Factory Orders Report comes out the first of the month and in May it held out hope that the economy was performing better than expected. This report is meant to show the overall health of the entire manufacturing sector, as it measures new orders, inventories, total shipments, and unfilled orders for the month that was surveyed.

The Commerce Department said on Friday that factory orders fell 1.8% after rising 0.4% in October. However, if the more volatile transportation sector is removed from the data, orders for factory-produced durable goods actually contracted by -0.1% in December, the report said. Maintaining independence and editorial freedom is essential to our mission of empowering investor success.

The reason Switzerland is preparing for possible blackouts is that the country relies on imported energy during the summer months. While more than half, or 60 percent of the country’s energy comes fromhydropowered means, but in the winter months productions slows and the country relies on imports. This key gauge of services sector activity is expected to slip for the third month in a row to 53.1, down slightly from 54.4 in October and the lowest since May 2020. The Factory Orders Report is meant to show the overall health of the entire manufacturing sector, as it pertains to new orders, inventories, total shipments, and unfilled orders.

After falling steeply last month, manufacturing activity continued to decline in New York State, according to the February survey. The general business conditions index climbed twenty-seven points but held below zero at -5.8. Twenty-six percent of respondents reported that conditions had improved over the month, and thirty-two percent reported that conditions had worsened.

The July/August average is moderately above its Q2 level, suggesting a slight positive from equipment spending in Q3. Some U.S. companies have signaled plans to shift away from China. Apple is planning to pivot some production elsewhere in Asia, such as India and Vietnam, the Wall Street Journal reported on Saturday. “The adverse reaction to the nonfarm payroll numbers sits in that counterintuitive world of good news is bad news as it pertains to what the Fed might have to do,” said Art Hogan, chief market strategist at B Riley Wealth Management. “To me, that’s always a mistake and likely will alleviate next week.”


This latest report shows a decrease in the contraction of the manufacturing sector and reported similar improvement in the Asian and European markets. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record.

An increase in factory orders doesn’t always mean good news as such a change can also be a sign ofinflation. Alternatively, when factory orders decrease, it typically means the economy is contracting—consumers are showing less demand for goods and services and thus fewer supplies need to be ordered. The factory orders report includes information about durable and nondurable goods.

Durable goods have an expected life of at least three years and often refer to items not purchased frequently, such as appliances, lawn and garden equipment, motor vehicles, and electronics. Full BioCierra Murry is an expert in banking, credit cards, investing, loans, mortgages, and real estate. She is a banking consultant, loan signing agent, and arbitrator with more than 15 years of experience in financial analysis, underwriting, loan documentation, loan review, banking compliance, and credit risk management. Unfilled orders rose 0.6 percent and shipments increased 0.3 percent.

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  • The unchanged reading was in line with forecasts of economists surveyed by the Wall Street Journal.
  • The capital spending index edged down to 18.3, and the technology spending index fell to 10.1.
  • Government data last Friday showed spending on long-lasting manufactured goods barely rose in August, while outlays on services picked up.

Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters. The data sets up Friday’s report on jobs from the government, which is a broader reading than just private payrolls. The Fed will be looking at the numbers to judge whether the tight labor market is showing signs of softening.

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Shipments of manufactured durable goods also increased in December, rising by $1.4 billion, or 0.5%, to $277.7 billion. Shipments of manufactured durable goods have increased 19 of the last 20 months. Provide specific products and services to you, such as portfolio management or data aggregation. Here are all of the forms, instructions and other information related to regulatory and statistical reporting in one spot.

New orders for new vehicles and parts, however, increased by less than 1%. New orders for manufactured goods fell a seasonally adjusted 1.8% in November, the Commerce Department said Friday, snapping a three-month growth streak. But orders for capital goods were stronger than previously reported, pointing to robust business spending at the start of the third quarter. Participants from across the state in a variety of industries respond to a questionnaire and report the change in a variety of indicators from the previous month. Respondents also state the likely direction of these same indicators six months ahead. April 2002 is the first report, although survey data date back to July 2001.

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