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Monday, August 10, 2020 5:19:45 AM EDT

Factory Orders Updated 04-Aug-20 10:22AM ET

Factory orders in June increased 6.2% m/m ( consensus 5.2%) following a downwardly revised 7.7% increase (from 8.0%) in May.

The back-to-back monthly increases follow a 13.5% decline in April.

New orders for durable goods rose 7.6% m/m in June.

New orders for nondurable goods increased 5.0%.

Shipments of manufactured goods jumped 9.8% m/m after increasing 3.0% in May. In April, shipments of manufactured goods declined 14.0%.

The inventory-to-shipments ratio fell to 1.51 in June from 1.65 in May.

The key takeaway from the report is the affirmation that business spending picked up in June as economies reopened, evidenced by a 3.4% increase in new orders for nondefense capital goods excluding aircraft that was up slightly from the 3.3% increase noted in the Advance Durable Goods Orders report.
Factory Orders6.2%7.7%-13.5%-11.0%0.2%
Less Defense7.0%7.5%-12.8%-11.2%-0.8%
Durable Goods7.6%15.0%-18.3%-16.7%2.0%
Nondurable Goods5.0%2.0%-9.3%-5.4%-1.5%
Unfilled Factory Orders-1.4%0.0%-1.5%-2.1%0.3%
Factory Shipments9.8%3.0%-14.0%-5.5%-0.4%
Factory Inventories0.6%0.2%-0.5%-1.1%-0.4%
Inventory/Shipment Ratio1.511.651.701.461.40