Updated: 02-Sep-21 10:19 ET
| July Factory Orders |
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| Updated: 02-Sep-21 10:19 ET |
Highlights
- Factory orders for manufactured goods increased 0.4% m/m in July, as expected, following a 1.5% increase in June.
- Shipments of manufactured goods were up 1.6% after increasing 1.9% in June.
Key Factors
- New orders for durable goods decreased 0.1% m/m in July after increasing 0.8% in June.
- New orders for nondurable goods rose 0.9% m/m in July after increasing 2.2% in June.
- Nondefense capital goods orders, excluding aircraft, -- a proxy for business spending -- edged up 0.1% m/m in July after increasing 1.0% in June.
- The inventory-to-shipments ratio dropped to 1.46 from 1.48 in June.
Big Picture
- The key takeaway from the report is that the pace of order growth for manufactured goods slowed noticeably in July, which is emblematic of headwinds created by the Delta variant and supply chain bottlenecks.
| Category | JUL | JUN | MAY | APR | MAR |
| Factory Orders | 0.4% | 1.5% | 2.3% | -0.1% | 1.4% |
| Less Defense | -0.1% | 1.6% | 2.1% | 0.5% | 1.9% |
| Durable Goods | -0.1% | 0.8% | 3.2% | -0.7% | 1.3% |
| Nondurable Goods | 0.9% | 2.2% | 1.4% | 0.5% | 1.6% |
| Unfilled Factory Orders | 0.3% | 0.8% | 1.0% | 0.4% | 0.5% |
| Factory Shipments | 1.6% | 1.9% | 0.9% | 0.2% | 2.1% |
| Factory Inventories | 0.5% | 1.0% | 1.1% | 0.5% | 0.8% |
| Inventory/Shipment Ratio | 1.46 | 1.48 | 1.49 | 1.49 | 1.48 |
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