REPEAT:MNI DATA ANALYSIS: US April Factory Orders Fell 0.8%>

Repeats Story Initially Transmitted at 14:00 GMT Jun 4/10:00 EST Jun 4

--Factory Inventories +0.3%; Business Inventories Tracking +0.3%

By Kevin Kastner and Holly Stokes

     WASHINGTON (MNI) - The value of new factory orders fell 0.8% in 

April, below the 0.5% decline expected by analysts in an MNI survey, 

data released by the Commerce Department Monday morning showed. 

     The weaker-than-expected decline in factory orders was due to a 

soft 0.1% gain in nondurable goods orders despite a 0.6% gain in 

petroleum and coal products. Nondurable goods new orders are equivalent 

to nondurable goods shipments in this report. 

     Durable goods orders were revised up slightly to a 1.6% decline 

from the 1.7% drop reported in the advance estimate.

     Factory orders excluding transportation were up 0.4% in the month 

following a 0.5% gain in March, continuing the string of gains that 

stretches back virtually uninterrupted for most of the past two years. 

     In addition, unfilled orders were up 0.5% in April, showing some 

pent-up demand for products that will need to be worked down in the 

coming months.

--TRANSPORTATION ORDERS STILL SOFT

     Transportation orders fell 6.0% in April, a small upward revision 

from the 6.1% decline in the advance estimate, but still driven by 

nondefense aircraft, which were down 28.9%. At the same time, defense 

aircraft orders were up 7.6% and motor vehicle orders were up 1.0%. The 

unlisted transportation components were up 1.9% in the month, based on 

an MNI calculation. 

     Nondefense capital goods new orders fell by 6.8%, however it was up 

1.0% when excluding aircraft. Civilian aircraft capital goods were down 

36.2% following a 71.1% increase in March. 

--INVENTORIES UP, SHIPMENTS FLAT

     Factory inventories rose by 0.3% in April. In addition to this, the 

Commerce Department's advance report on inventories showed a 0.6% 

increase for retail inventories and a flat reading for wholesale 

inventories. 

     While these data are eligible for revision, the levels as they 

stand now, combined with the 0.3% gain in factory inventories, would 

result in a 0.3% gain in April business inventories when that report is 

released on June 14, an MNI calculation showed. The revised wholesale 

data for April will be released on June 8 and could alter this 

projection. 

     Overall factory shipments were flat in the month on a flat reading 

for durable goods shipments and the 0.1% rise in nondurable shipments. 

Nondefense capital goods shipments posted a decline of 4.6%, but were up 

0.9% after excluding the civilian aircraft component. 

     Given the mix of inventories and shipments reported Monday, the 

inventory-to-shipments ratio held steady at 1.35 in April. 

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