Global| Oct 05 2017U.S. Factory Orders Surge With More Aircraft Orders
by:Tom Moeller
|in:Economy in Brief
Summary
Manufacturing sector orders increased 1.2% during August (5.8% y/y) following an unrevised 3.3% July decline. Durable goods orders rose 2.0% (5.4% y/y), revised from the advance report of a 1.7% gain. That followed a 6.8% decline. [...]
Manufacturing sector orders increased 1.2% during August (5.8% y/y) following an unrevised 3.3% July decline. Durable goods orders rose 2.0% (5.4% y/y), revised from the advance report of a 1.7% gain. That followed a 6.8% decline. Transportation sector orders improved 5.1% (3.4% y/y) due to a 44.8% surge in commercial aircraft bookings. Orders outside of the transportation sector rose 0.4% (6.3% y/y). Computer & electronic product orders increased 1.0% (3.7% y/y). Machinery orders gained 0.3% (7.1% y/y), while electrical equipment and appliance orders rose 1.7% (-0.4% y/y).
Total factory sector shipments gained 0.5% (5.6% y/y), the strongest increase since December. Durable goods shipments rose 0.5% (4.9% y/y). Transportation equipment shipments improved 2.3% (2.7% y/y). Auto shipments strengthened 6.2% (-7.3% y/y) while light truck shipments increased 1.1% (+3.5% y/y). Civilian aircraft shipments were off 11.5% (-0.4% y/y). Excluding the transportation sector, shipments rose 0.6% (6.2% y/y). Shipments of machinery improved 1.7% in August (7.7% y/y) while computer & electronic product shipments gained 0.6% (3.4% y/y).
Nondurable goods shipments (which equal orders) rose 0.4% (6.2% y/y). The value of petroleum refinery shipments gained 2.6% (23.7% y/y). Basic chemical shipments eased 0.3% (+2.5% y/y), and textile product shipments declined 1.2% (-1.5% y/y). Shipments of apparel fell 1.4% (+2.9% y/y) while food product shipments eased 0.1 % (+7.2% y/y).
Unfilled orders held steady m/m (+0.8% y/y) following a 0.3% decline. Outside of the transportation sector, unfilled orders rose 0.3% (4.0% y/y). Electrical equipment & appliance backlogs improved 0.1% (6.8% y/y) while computer & electronic product backlogs also gained 0.1% (2.4% y/y). Unfilled orders for machinery increased 0.4% (3.9% y/y).
Inventories at the factory level rose 0.4% (2.8% y/y) in August. Outside of the transportation sector, inventories increased 0.6% (3.8% y/y). Durable goods inventories gained 0.4% (2.7% y/y). Fabricated metals inventories strengthened 0.6% (4.7% y/y). Machinery inventories increased 0.9% (5.2% y/y) while inventories of computers & electronic products rose 0.6% (3.3% y/y). Nondurable goods inventories improved 0.6% (2.9% y/y) while apparel inventories increased 0.4% (-9.4% y/y). The value of petroleum refinery inventories increased 4.3% (18.1% y/y).
The factory sector figures are available in Haver's USECON database.
| Factory Sector- NAICS Classification (%) | Aug | Jul | Jun | Aug Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| New Orders | 1.2 | -3.3 | 3.2 | 5.8 | -1.9 | -7.7 | 1.8 |
| Shipments | 0.5 | 0.2 | 0.1 | 5.6 | -1.8 | -5.8 | 1.3 |
| Unfilled Orders | 0.0 | -0.3 | 1.3 | 0.8 | -1.9 | -2.0 | 8.4 |
| Inventories | 0.4 | 0.4 | 0.3 | 2.8 | 0.7 | 0.0 | 1.7 |
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.
