New Bookings on the rise again
U.S. Factory orders continued to rise after recent weakness, as bookings outgrow production.
Manufacturers faced increasing orders across many sectors including, primary metals, fabricated metal products, machinery, computers and related products.
The growth in the manufacturing sector indicates that the recent decline in new orders is a temporary lull - but another poor report could renew worries over the U.S. growth. Over the last 12 months, bookings soared by 5.29 %, and inventories by 1.55 %.
Excluding defense and transportation, which the government uses to help calculate quarterly reports on U.S. growth, orders increased by 0.73 % less than total orders on the seasonally adjusted basis and shipments by 0.23 %.
Orders excluding defense and transportation are considered the best gauge of capital spending by businesses.
Over the past 12 months, excluding defense and transportation bookings grew by 4.47 % and unfilled orders by 11.68 %.
Shipments increased in March by 0.29 % to $495 billions, an increase of $1 billions from $493 in February on the seasonally adjusted basis, reported by the U.S. Commerce Department. Shipments excluding transportation grew by 0.05 %.
The U.S. Commerce Department reported total factory inventories dropped by -0.86 % to $637 billions, a decrease by $6 billions from $642 in February in March on the seasonally adjusted basis, led by -6.64 % decrease in defense aircraft and parts inventories, representing 2.09 % of total factory inventories. Government purchases of defense products are uneven and can sometimes distort the data.. Inventory to shipments ratio fell to 1.29 from 1.30 in the previous month.
Unfilled orders continue to grow by higher rate, unfilled orders increased by 0.64 % on the seasonally adjusted basis, led by 7.42 % increase in construction machinery, accounting for 1.29 % of total factory unfilled orders. Over the past 12 months, Unfilled orders grew by 7.64 %.
In February factory orders were revised to 1.56 % growth to $489 billions and manufacturing shipments to $493 billions an increase by 0.93 %.