MNI DATA IMPACT: US February Factory Orders Down 0.5%>

--Factory Inventories Rise 0.3%

--Orders Down On Transportation, Machinery, Computers And Electronics 

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - The value of new factory orders fell 0.5% in 

February, just above the 0.6% decrease expected by analysts in an MNI 

survey as expected by the Bloomberg consensus, data released by the 

Commerce Department Monday morning showed. 

     Durable goods orders were unrevised from the 1.6% decline in the 

advanced estimate. Nondurable goods orders rose 0.6% on increases in 

petroleum and coal products and food products, partially offset by 

beverages and apparel. Nondurable goods new orders are equivalent to 

nondurable goods shipments in this report. 

Here are the key findings from the release:

     -Factory orders excluding transportation were up 0.3% in the month 

following a 0.1% decrease in January, resuming the string of gains that 

stretches back for most of the past two years. Durables orders excluding 

transportation were revised down to a 0.1% decline from the 0.1% gain 

reported in the advanced estimate. In addition, unfilled orders were 

down 0.3% in February, showing a slight decrease in demand for 

manufactured goods. 

     -Transportation orders were down 4.5% in February. The unlisted 

transportation components were down 0.7% in the month, based on an MNI 

calculation. Nondefense capital goods new orders fell by 6.2%, and were 

still down 0.1% when excluding aircraft. Factory inventories posted a 

0.3% increase in February. 

     -Overall factory shipments were up 0.4% in the month on a 0.2% 

increase for durable goods shipments. The gain was also driven by a 

0.6% gain in nondurable shipments. Nondefense capital goods shipments 

increased by 0.6%, but were down 0.1% after excluding the civilian 

aircraft component. Given the mix of inventories and shipments reported 

Monday, the inventory-to-shipments ratio was unchanged from 1.36 in 

January. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$]