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Wednesday, July 17, 2019
HomeNewsEconomyFactory Orders Post Stronger than Expected Gains in March

Factory Orders Post Stronger than Expected Gains in March

Industry production 4.0 and technology concept, depicting factory production on a conveyor belt with factory operational workers in uniform. (Photo: AdobeStock)
Industry production 4.0 and technology concept, depicting factory production on a conveyor belt with factory operational workers in uniform. (Photo: AdobeStock)
Industry production 4.0 and technology concept, depicting factory production on a conveyor belt with factory operational workers in uniform. (Photo: AdobeStock)

Factory orders, or new orders for manufactured goods, rose $9.3 billion or 1.9% to $508.2 billion in March, stronger than the consensus forecast.

The consensus forecast was looking for a 1.5% gain, ranging from a low of -0.5% to a high of 2.2%.

PriorRevisedConsensus ForecastForecast RangeActual
Factory Orders – M/M ∆-0.5%-0.3%1.5%-0.5% — 2.2%1.9%
New Orders Durable Goods M/M ∆-1.3%2.6%
Shipments M/M ∆0.2%0.4%
Unfilled Orders M/M ∆-0.2%0.2%
Inventories M/M ∆0.4%0.3%

New orders for manufactured durable goods have been up four of the last five months, and increased $6.6 billion or 2.6% to $258.0 billion in March. That’s down slightly from the previously reported 2.7% gain, but up from the 1.3% decrease in February.

The upward revisions are a net positive for gross domestic product (GDP). The Bureau of Economic Analysis (BEA) “advance” estimate for Real GDP in Q1 2019 came in at an annual rate of 3.2%.

Transportation equipment also has been up four of the last five months, and led the increase in March by rising $6.1 billion or 7.0% to $93.8 billion.

New orders for manufactured nondurable goods rose $2.8 billion or 1.1% to $250.2 billion.

Shipments of manufactured durable goods have been up four of the last five months, and increased $1.0 billion or 0.4% to $259.5 billion in March. That’s up from the initially reported gain of 0.3% and follows a 0.2% increase in February.

Transportation equipment was up in March after two straight monthly declines, and drove the increase in shipments by rising $1.0 billion or 1.1% to $90.7 billion.

Shipments of manufactured nondurable goods have been up two consecutive months and rose $2.8 billion or 1.1% to $250.2 billion after gaining 0.8% in February.

Petroleum and coal products were also up two consecutive months, and drove the increase in nondurable shipments rising $3.2 billion or 6.0% to $55.5 billion.

Unfilled orders for manufactured durable goods in March have been up two of the last three months, and gained $2.7 billion or 0.2% to $1,181.2 billion in March.

While that’s down from the initially published 0.3% increase it follows a 0.2% decline in February. Transportation equipment drove the increase and is also up two of the last three months, rising $3.1 billion or 0.4% to $811.9 billion.

Inventories of manufactured durable goods have been up twenty‐six of the last twenty‐seven months, and gained $1.2 billion or 0.3% to $420.5 billion in March. That’s unchanged from the initially published increase and follows a decline of 0.4% in February.

Machinery has been up fifteen of the last sixteen months and led the increase in inventories for March, rising $0.7 billion or 1.0% to $71.7 billion.

Inventories of manufactured nondurable goods have been up three consecutive months, and rose $1.6 billion or 0.6% to $270.4 billion in March after gaining 0.2% in February. Petroleum and coal products have also been up three consecutive months and rose $1.2 billion or 3.0% to $41.5 billion in March

Materials and supplies decreased 0.1% in both durable goods and nondurable goods during March, regarding stage of production. Work in process rose 0.5% in durable goods and 1.1% in nondurable goods. Finished goods gained 0.5% in durable goods and 0.9% in nondurable goods.

Written by
Staff Writing Group

People's Pundit Daily delivers reader-funded data journalism covering the latest news in politics, polls, elections, business, the economy and markets.

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