• 340 days Will The ECB Continue To Hike Rates?
  • 340 days Forbes: Aramco Remains Largest Company In The Middle East
  • 342 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 742 days Could Crypto Overtake Traditional Investment?
  • 746 days Americans Still Quitting Jobs At Record Pace
  • 748 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 751 days Is The Dollar Too Strong?
  • 752 days Big Tech Disappoints Investors on Earnings Calls
  • 753 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 754 days China Is Quietly Trying To Distance Itself From Russia
  • 755 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 759 days Crypto Investors Won Big In 2021
  • 759 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 760 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 762 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 762 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 766 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 766 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 767 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 769 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Factory Orders Unexpectedly Decline 6th Month; Five Excuses; Orders vs. Shipments

Extending the longest streak since the 2008-2009 recession, Factory Orders Unexpectedly Decline 6th Month.

New orders for U.S. factory goods unexpectedly fell in January, posting their sixth straight monthly decline, a sign of weakness in the manufacturing sector.

The Commerce Department said on Thursday new orders for manufactured goods slipped 0.2 percent after a revised 3.5 percent decline in December.

Economists polled by Reuters had expected factory orders to gain 0.2 percent in January after a previously reported 3.4 percent tumble in December.


Bloomberg Consensus Estimate

The Bloomberg Consensus Estimate was also +0.2%, but the forecast range was a very wide -2.5% to 3.0%.


New Orders vs. Shipments

Manufacturing: New Orders & Shipments
Chart from Bloomberg

To help explain the chart, Bloomberg notes that "Aircraft orders have a long lead to shipment."


Census Report

Diving into the Census Report, for January vs. December (seasonally adjusted) we find new orders look like this:

  • All Manufacturing: -0.2%
  • Excluding Transportation: -1.8%
  • Excluding Defense: -0.2%

Durable goods rose 2.8% due to jump in commercial aircraft orders. It was not enough to offset everything else.


Blame Game

In the reports from Reuters and Bloomberg, some blame the rising dollar, some blame weakness in foreign demand, some blame the port strike, and some blame lower oil prices, and some blame cutbacks in the energy sector.

No one cited the "slowing global economy".

 

Back to homepage

Leave a comment

Leave a comment