MNI DATA IMPACT: US March Factory Orders Rise 1.9%>

--Factory Inventories Up 0.4%

--Orders Up On Transportation, Computers And Electronic Products

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - The value of new factory orders rose 1.9% in 

March, above the 1.5% increase expected by analysts in an MNI survey and 

the 1.6% increase expected by the Bloomberg consensus, data released by 

the Commerce Department Thursday morning showed. 

     Durable goods orders were revised down slightly to 2.6% from the 

already reported 2.7% increase. Nondurable goods orders rose 1.1% on 

increases in petroleum and coal products, partially offset by beverages, 

food products, and paper products. 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 0.8% in the month 

following a 0.3% increase in February and a 0.1% decline 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 0.3% increase from the already reported 0.4% gain. In addition, 

unfilled orders were up 0.2% in March, showing a slight increase in 

demand for manufactured goods. 

     -Transportation orders were up 7.0% in March. The unlisted 

transportation components were up 1.6% in the month, based on an MNI 

calculation. Nondefense capital goods new orders rose by 6.5%, and were 

still up 1.4% when excluding aircraft. Factory inventories posted a 

0.4% increase in March. 

     -Overall factory shipments were up 0.7% in the month on a 0.4% 

increase for durable goods shipments. The gain was also driven by a 1.1% 

rise in nondurable shipments. Nondefense capital goods shipments 

increased by 0.2%, but were flat after excluding the civilian aircraft 

component. Given the mix of inventories and shipments reported Thursday, 

the inventory-to-shipments ratio was unchanged from 1.36 in February. 

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

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