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Factory Orders

Definition: The Factory Orders report measures the volume of new orders, shipments, unfilled orders, and inventories reported by domestic manufacturers and is expressed both as a raw figure (USD) and as a percentage change from the previous month.

Description: This indicator signals industrial demand for durable (understood as goods whose intended lifespan is three years or more) and non-durable goods. An increase in orders means a likely increase in production, which has a positive effect on the US economy. By the same token, a decrease in orders signals an impending decrease in production.

Influence: An increase in factory orders is a positive sign for the future growth of the economy and tends to strengthen the US dollar.

Market Impact: Low

Released: Monthly at 15:00 GMT

Source: US Census Bureau


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