Today's Report (11/03/2021)

New orders for manufactured goods in September, up sixteen of the last seventeen months, increased $1.3 billion or 0.2% to $515.9 billion, the U.S. Census Bureau reported today. This followed a 1.0% August increase. Shipments, also up sixteen of the last seventeen months, increased $3.2 billion or 0.6% to $511.5 billion. This followed a 0.1% August increase. Unfilled orders, up eight consecutive months, increased $8.9 billion or 0.7% to $1,247.3 billion. This followed a 0.9% August increase. The unfilled orders-to-shipments ratio was 6.84, down from 6.85 in August. Inventories, up fifteen of the last sixteen months, increased $6.3 billion or 0.8% to $756.9 billion. This followed a 0.7% August increase. The inventories-to-shipments ratio was 1.48, unchanged from August.

New orders for manufactured durable goods in September, down following four consecutive monthly increases, decreased $0.9 billion or 0.3% to $261.4 billion, up from the previously published 0.4% decrease. This followed a 1.3% August increase.

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.