What is the Factory Orders Report?
The Factory Orders Report is a monthly report showing the value of new factory orders for durable and non-durable goods. This report is also known as the “Full Report on Manufacturers’ Shipments, Inventories and Orders (M3)” conducted by the U.S. Department of Commerce. Factory Orders is more comprehensive than the Durable Goods Report as it examines specific trends with industries. Durable Goods Report may look at an overarching category, like computer equipment; however, the Factory Orders Report would breakdown specifics within that category and consider computer hardware, semiconductors, and monitors. The report is broken down into four sections including new orders, unfilled orders, shipments, and inventories.
Why is the Factory Orders Report valuable?
The biggest advantage of the Factory Orders Report is how detailed its data breakdowns are. Additionally, since it tracks both durable and non-durable goods, it provides a fuller perspective of overall economic health. Increases in factory orders typically signal economic expansion and increased consumer demand. Increased change can also be an indication of inflation depending on the situation. When demand is low, factory orders tend to lessen and signal contraction in the economy
What should you do?
If you’re looking to understand industry specific trends and overall economic health, the Factory Orders Report is a great tool for comprehensive insights into both. Majestic’s CORE Report follows the Factory Orders Report; along with other indicators every week to see where the market stands.