|
Factory orders consist of the earlier announced durable goods report plus
non-durable goods orders. The report is very predictable with nondurables the
only new component. Nondurables consist of such items as food and tobacco
products which grow at a fairly consistent monthly rate, so that market
forecasts for this report are far more accurate than for the durable orders
report. In addition to seeing nondurables for the first time, the market also
watches for revisions to the durable orders data, which can be significant. At
present, durable goods orders sum to about 54% of total orders.
The final piece of new information in this report is factory inventories -
the first glimpse at the inventory picture each month (wholesales inventories
are typically released a week later, with retail inventories released a few days
after wholesale inventories). Though the inventory figure is not a market-mover,
economists use this number to help forecast inventories in the quarterly GDP
report.
Index
|
|
