U.S. factory orders rise modestly in April
Reuters
Published Jun 02, 2022 10:41AM ET
WASHINGTON (Reuters) - New orders for U.S.-manufactured goods increased less than expected in April, but demand for products remains strong, which should help to keep factories humming.
The Commerce Department said on Thursday that factory orders rose 0.3% in April after advancing 1.8% in March. Economists polled by Reuters had forecast factory orders would rise 0.7%.
Manufacturing, which accounts for 12% of the U.S. economy, is being pinned by still strong demand for goods even as spending shifts back to services. A survey on Wednesday showed
the Institute for Supply Management's national factory activity index rebounded in May after two straight monthly declines.
But China's zero COVID-19 policy and Russia's dragging war against Ukraine could slow the improvement in supply chains.
In April, there were increases in orders for machinery motor vehicles and primary metals. But orders for electrical equipment, appliances and components fell 0.2%. Orders for computers and electronic products edged up 0.1%.
Shipments of manufactured goods gained 0.2% after accelerating 2.2% in March. Inventories at factories increased 0.6%. Unfilled orders rose 0.5%, matching March's increase.
The Commerce Department also reported that orders for non-defense capital goods, excluding aircraft, which are seen as a measure of business spending plans on equipment, increased 0.4% in April instead of 0.3% as reported last month.
Shipments of these so-called core capital goods, which are used to calculate business equipment spending in the gross domestic product report, advanced 0.8% in April as reported last month. Robust business spending on equipment helped to shore up domestic demand in the first quarter, even as GDP contracted at a 1.5% annualized rate during that period.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.