Today's Report (01/06/2022)

New orders for manufactured goods in November, up eighteen of the last nineteen months, increased $8.4 billion or 1.6% to $531.8 billion, the U.S. Census Bureau reported today. This followed a 1.2% October increase. Shipments, also up eighteen of the last nineteen months, increased $3.5 billion or 0.7% to $527.0 billion. This followed a 2.0% October increase. Unfilled orders, up ten consecutive months, increased $9.1 billion or 0.7% to $1,260.1 billion. This followed a 0.3% October increase. The unfilled orders-to-shipments ratio was 6.78, up from 6.77 in October. Inventories, up seventeen of the last eighteen months, increased $5.3 billion or 0.7% to $770.0 billion. This followed a 0.9% October increase. The inventories-to-shipments ratio was 1.46, unchanged from October.

New orders for manufactured durable goods in November, up six of the last seven months, increased $6.7 billion or 2.6% to $268.4 billion, up from the previously published 2.5% increase. This followed a 0.1% October increase. Transportation equipment, up following two consecutive monthly decreases, led the increase, $5.0 billion or 6.5% to $82.1 billion. New orders for manufactured nondurable goods increased $1.7 billion or 0.7% to $263.4 billion.


What is it?

Represent the dollar level of new orders for both durable and nondurable goods. Durable goods are items that last 3 or more years. PCs, cars, phones, etc.

What are the fundamental effects?

If orders drop off, factories risk being idle, and companies owning these plants can quickly lose money. If demand for factory goods is strong, assembly lines will remain in full operation and the manufacturer can generate sales income.

How does it affect the markets?

CURRENCY - Generally muted.

STOCKS - Equity investors prefer to see Factory Orders validate other signs of economic strength as this could translate into higher corporate earnings.

BONDS - Bond prices might inch higher if Factory Orders conform with other evidence that the economy is weakening.