US factory orders for the month of September 2019
- US factory orders for September -0.6% versus -0.4% estimate. Prior month -0.1
- Durable goods orders final September -1.2% versus -1.1% preliminary report (and estimate)
- durable goods ex transportation -0.4% versus -0.3% estimate. Preliminary -0.3%
- capital goods orders nondefense ex air -0.6% versus -0.5% preliminary
- capital goods shipments nondefense ex air -0.7% versus -0.7% preliminary
- nondurable orders +0.1% versus -0.4% in August
- computers/electronic product orders -1.2% versus -0.1% August
- total manufacturing inventories +0.3% versus August -0.1%
- inventory /shipments ratio 1.39 months versus 1.39 months last month
Some highlights from the Commerce Department
- overall business spending on equipment was slightly weaker than initially thought. That suggests that manufacturing remains soft as a result of US China trade war
- Durable goods orders accounts for about 11% of the economy.
- Transportation equipment orders fell -2.8%
- Orders for civilian aircraft imports fell -11.8% after a -17.2% in the prior month. The Boeing troubles are mpacting this series. They should see a snapback if and when Boeing 737 Max is cleared again to fly
- Electrical equipment, appliances and components rose 0.7%
- THe orders for nondefense capital goods excluding aircraft, is seen as a measure of business spending plans on equipment fell -0.6%.
- Shipments of core capital goods which is used to calculate business equipment spending in the GDP report fell by -0.7% (the same as the preliminary). Business investment declined at its steepest pace in more than 3 1/2 years in the 3rd quarter. This data is for the 3rd quarter of course.
The US stocks have paired some of their gains after the report. The S&P index is trading at 3080.78. The high price reached 3085.20. The NASDAQ is down to 8431.34. It’s high price reached 8451.37. Despite the fall each of those major indices are still trading at all-time record high closing levels.