Factory Orders decline in February
Factory orders for manufactured goods declined 0.5% m/m in February (Briefing.com consensus -0.6%) following an upwardly revised 1.5% increase (from +1.4%) in January. Shipments of manufactured goods jumped 0.6% after increasing 1.4% in January.
The key takeaway from the report is that it followed a relatively strong month of order growth in January and likely reflects some delayed influence of the Omicron variant on business activity, making it too early to say if this is the start of a weakening trend for factory orders.
New orders for durable goods dropped 2.1% m/m in February after increasing 1.5% in January.
New orders for nondurable goods increased 1.2% m/m in February after increasing 1.5% in January.
Nondefense capital goods orders, excluding aircraft — a proxy for business spending — fell 0.2% in February after increasing 1.2% in January.
The inventory-to-shipments ratio held steady at 1.45.