Updated: 04-Dec-23 10:33 ET
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Updated: 04-Dec-23 10:33 ET |
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Highlights
- Factory orders fell 3.6% month-over-month in October (Briefing.com consensus 2.6% after increasing a downwardly revised 2.3% (from 2.8%) in September.
- Excluding transportation, factory orders fell 1.2% after increasing a downwardly revised 0.4% (from 0.8%) in September.
- Shipments of manufactured goods were down 1.4% after a revised unchanged reading (from 0.4%) in September.
Key Factors
- Durable goods orders fell 5.4% month-over-month after jumping a revised 4.0% (from 4.6%) in September.
- New orders for nondurable goods were down 1.9% after increasing a revised 0.6% (from 1.0%) in September.
- New orders for nondefense capital goods excluding aircraft -- a proxy for business spending -- were down 0.3% after decreasing a revised 0.2% (from +0.5%) in September.
- The inventory-to-shipments ratio rose to 1.48 from 1.46.
Big Picture
- The key takeaway from the report is that the October decrease was the largest month-over-month contraction since April 2020, when factory orders plunged 13.5% as coronavirus-related lockdowns spread. The October report also featured a downward revision to September figures, including orders for nondefense capital goods excluding aircraft, indicating that business spending in September was weaker than originally estimated.
Category |
OCT |
SEP |
AUG |
JUL |
JUN |
Factory Orders |
-3.6% |
2.3% |
1.0% |
-2.1% |
2.3% |
Less Defense |
-4.2% |
2.7% |
0.8% |
-2.2% |
3.0% |
Durable Goods |
-5.4% |
4.0% |
-0.1% |
-5.6% |
4.3% |
Nondurable Goods |
-1.9% |
0.6% |
2.2% |
1.5% |
0.4% |
Unfilled Factory Orders |
0.3% |
1.3% |
0.3% |
0.5% |
1.8% |
Factory Shipments |
-1.4% |
0.0% |
1.3% |
0.7% |
0.2% |
Factory Inventories |
0.1% |
0.1% |
0.3% |
0.1% |
-0.2% |
Inventory/Shipment Ratio |
1.48 |
1.46 |
1.46 |
1.47 |
1.48 |