MNI BRIEF: European Fiscal Board Calls For Fiscal Tightening

MNI BRIEF: ADP's Richardson Sees Pockets of Weakness in US Job Market

MNI China Daily Summary: Wednesday, July 3

MNI BRIEF: NBP Holds Reference Rate At 5.75% As Expected

MNI: PBOC Sets Yuan Parity Higher At 7.1312 Weds; -0.34% Y/Y

MNI: PBOC Net Drains CNY248 Bln Via OMO Weds; Rates Unchanged

MNI: US MAY FACTORY ORDERS -0.5%; EX-TRANSPORT NEW ORDERS -0.7%

MNI: US ISM JUN SERVICES COMPOSITE INDEX 48.8

US JUNE FINAL SERVICES PMI 55.3 (55.1 FLASH; 54.8 MAY)

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Unexpected Factory Orders Drop Further Sign Of Softening Goods Output

US DATA
DataHomepagemarkets-real-timeData BulletBulletMarketsFixed Income BulletsForeign Exchange Bullets

Factory orders were much weaker than expected in May, contracting by 0.5% vs +0.2% survey for the first decline in 4 months, and downward revisions to prior (0.4% Apr down from 0.7%).

  • The 3M/3M annual run rate actually jumped to a 6-month high 3.9% , mostly reflecting the dropping out of the sharp declines at the start of 2024. But the level of SA factory orders is at levels seen previously in mid-2022, and mid-2023 - in other words, orders have been basically flat for a couple of years.
  • Ex-transport factory orders came in at -0.7% M/M (after +0.5% in April), essentially flatlining over the last couple of years as well.
  • The durable goods report was little changed in the final, with core capital goods orders confirming the 0.6% contraction in the advance report.
  • With the May Shipments, Inventories and Orders data set in hand, business capex and goods output appears to be softening, reflected in contractionary ISM manufacturing readings and sub-0.5% Y/Y growth in industrial production.

174 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Factory orders were much weaker than expected in May, contracting by 0.5% vs +0.2% survey for the first decline in 4 months, and downward revisions to prior (0.4% Apr down from 0.7%).

  • The 3M/3M annual run rate actually jumped to a 6-month high 3.9% , mostly reflecting the dropping out of the sharp declines at the start of 2024. But the level of SA factory orders is at levels seen previously in mid-2022, and mid-2023 - in other words, orders have been basically flat for a couple of years.
  • Ex-transport factory orders came in at -0.7% M/M (after +0.5% in April), essentially flatlining over the last couple of years as well.
  • The durable goods report was little changed in the final, with core capital goods orders confirming the 0.6% contraction in the advance report.
  • With the May Shipments, Inventories and Orders data set in hand, business capex and goods output appears to be softening, reflected in contractionary ISM manufacturing readings and sub-0.5% Y/Y growth in industrial production.