TopNews

Economic Watch: Factory Orders Drop Again

June 2, 2015

By Evan Lockridge

SHARING TOOLS        | Print Subscribe

New orders for factory-made goods continue to disappoint, falling 0.4% in April from the month before and marking the eighth decline in the last nine months.

This follows a 2.2% increase in March from February, according to the U.S. Commerce Department report released Tuesday.

New orders to factories for long-lasting manufactured durable goods dropped 1% in April from March, the second decline out of the last three months. It was led by a 2.4% decline in transportation orders.

The level of shipments of manufactured goods was virtually unchanged in April compared to March’s gain of 0.5% from February.

Shipments of manufactured durable goods fell 0.2% in April, a decline from the 0.1% earlier reported by the Commerce Department. This is the third drop out of the last four months; March was the exception, with shipments up 1.5%.

The report also showed orders for non-defense capital goods excluding aircraft, seen as an indication of business confidence and spending plans, fell 0.3% in April, revised downward from a 1% gain in an earlier advance report. Shipments for these goods were also revised downward, showing only a 0.5% increase in April instead of the previously reported 0.8% gain.

Some analysts are blaming the report on a stronger U.S. dollar, which makes the cost of domestically produced goods more expensive overseas. In addition, lower oil prices have hurt demand for petroleum-related equipment.

The good news is, a separate report from Monday and a first look at manufacturing for May show conditions are getting better.

The Institute for Supply Management Purchasing Manager’s Index registered 52.8% for month, an increase of 1.3 percentage points over the April reading of 51.5%. The latest reading is the highest in three months. American Trucking Associations Chief Economist Bob Costello called this news “good for trucking" in his Twitter feed.

Comment On This Story

Name:  
Email:  
Comment: (Maximum 2000 characters)  
Leave this field empty:
* Please note that every comment is moderated.

Newsletter

We offer e-newsletters that deliver targeted news and information for the entire fleet industry.

GotQuestions?
sponsored by
sponsor logo

ELDs and Telematics

Scott Sutarik from Geotab will answer your questions and challenges

View All
GotQuestions?

Sleeper Cab Power

Steve Carlson from Xantrex will answer your questions and challenges

View All