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Factory Orders Join Parade Of Economic Misses; Inventories Of Manufactured Durable Goods At Highest Ever

Tyler Durden's picture




 

And another miss. Factory orders dropped 1.2% in April, down two of the last three months, to $40.4 billion, following a material March revision from 3.0% to 3.8%. The drop was greater than expected, missing consensus of -1.0%, and indicative that the transition from Q1 GDP strength to Q2 GDP weakness is, as expected, going to be acute. Elsewhere, inventories of manufactured durable goods in April, up sixteen consecutive months, increased $3.3 billion or 0.9 percent to $350.6 billion, unchanged from the previously published increase. This was at the highest level  since the series was first published on a NAICS basis and followed a 1.7 percent March increase. Look for inventories to be the swing factor once again in Q2 GDP. Inventories rose 1.3% in April, shipments down 0.2% higher, and unfilled orders were up 0.3%. The inventory-to-shipments ratio was up to 1.32 in April from 1.30 in March.

More from the report:

New Orders

New orders for manufactured durable goods in April, down two of the last three months, decreased $7.1 billion or 3.6 percent to $190.3 billion, unchanged from the previously published decrease. This followed a 4.6 percent March increase.

Transportation equipment, also down two of the last three months, had the largest decrease, $4.8 billion or 9.3 percent to $46.9 billion.
New orders for manufactured nondurable goods increased $1.6 billion or 0.6 percent to $250.1 billion.

Shipments

Shipments of manufactured durable goods in April, down following four consecutive monthly increases, decreased $2.5 billion or 1.3 percent to $194.4 billion, revised from the previously published 1.0 percent decrease. This followed a 3.1 percent March increase.

Transportation equipment, also down following four consecutive monthly increases, had the largest decrease, $1.6 billion or 3.3 percent to $46.5 billion.

Shipments of manufactured nondurable goods, up ten consecutive months, increased $1.6 billion or 0.6 percent to $250.1 billion. This followed a 3.1 percent March increase. Food products, up eight consecutive months, led the increase, up $1.1 billion or 1.8 percent to $61.0 billion. This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.9 percent March increase.

Unfilled Orders

Unfilled orders for manufactured durable goods in April, up twelve of the last thirteen months, increased $2.5 billion or 0.3 percent to $850.7  billion, revised from the previously published 0.2 percent increase. This followed a 0.7 percent March increase. Machinery, up fifteen consecutive months, had the largest increase, $2.5 billion or 2.5 percent to $104.0 billion.

Inventories

Inventories of manufactured durable goods in April, up sixteen consecutive months, increased $3.3 billion or 0.9 percent to $350.6 billion, unchanged from the previously published increase. This was at the highest level since the series was first published on a NAICS basis and followed a 1.7 percent March increase.

Transportation equipment, also up sixteen consecutive months, had the largest increase, $0.9 billion or 0.9 percent to $106.0 billion.
Inventories of manufactured nondurable goods, up eight consecutive months, increased $4.4 billion or 1.9 percent to $237.2 billion. This followed a 1.0 percent March increase. Petroleum and coal products, also up eight consecutive months, led the increase, up $3.2 billion or 6.0 percent to $55.7 billion.

By stage of fabrication, April materials and supplies increased 0.9 percent in durable goods and 0.5 percent in nondurable goods. Work in  process increased 1.1 percent in durable goods and 3.5 percent in nondurable goods. Finished goods increased 0.7 percent in durable goods and 2.2 percent in nondurable goods.

 

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Thu, 06/02/2011 - 10:14 | 1332133 Conrad Murray
Conrad Murray's picture

I know what is going to bring manufacturing back!

http://blogs.computerworld.com/18388/homeland_security_testing_mind_read...

Thu, 06/02/2011 - 10:28 | 1332166 DeadFred
DeadFred's picture

The government is testing a system that can tell when you are thinking anti-government thoughts then swoop in and stop you before you act on them? That's terrible! I think we should

Thu, 06/02/2011 - 12:04 | 1332584 Dolemite
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Risk off in a major way

http://deadcatbouncing.blogspot.com/

 

Thu, 06/02/2011 - 10:19 | 1332138 Cdad
Cdad's picture

But...but...Tyler....just last night, Joe "chunks" Lavorgna suggested to the Nanosecond Money crew that the inventory rebuild cycle was just getting started.

What gives?

**Is today the day that Doug Kass reconsiders his "Buy GM" call?**

Thu, 06/02/2011 - 10:25 | 1332158 SheepDog-One
SheepDog-One's picture

The best part of being a 'real TV economic anal-cyst' is never having to be held to your calls. Similar to Cramers 'strong buy' call on Bear Stearns only hours before it collapsed to nothing!

Thu, 06/02/2011 - 10:57 | 1332276 treemagnet
treemagnet's picture

I actually forgot about that one - theres too much bullshit to remember!

Thu, 06/02/2011 - 12:01 | 1332566 TruthInSunshine
TruthInSunshine's picture

The best part of being a 'real TV economic anal-cyst' is never having to be held to your calls. Similar to Cramers 'strong buy' call on Bear Stearns only hours before it collapsed to nothing!

 

As you know doubt are aware, Jimmy Cramer's Bear Stearns call but was a mere blemish against the backdrop of the malignant tumor of his career of lying and cheating Joe Q. Public in both his on prop desk and on CNBsC desk portions of his career.

The Winners of the New World - TheStreet

By Jim Cramer 02/29/00 - 09:42 AM EST

Editor's Note: James J. Cramer is the keynote speaker at the 6th Annual Internet and Electronic Commerce Conference and Exposition, held today at the Jacob Javits Center in New York City. We're running the full text of that speech here.

You want winners? You want me to put my Cramer Berkowitz hedge fund hat on and just discuss what my fund is buying today to try to make money tomorrow and the next day and the next? You want my top 10 stocks for who is going to make it in the New World? You know what? I am going to give them to you. Right here. Right now.

OK. Here goes. Write them down -- no handouts here!: 724 Solutions (SVNX), Ariba(ARBA_), Digital Island (ISLD), Exodus (EXDS), InfoSpace.com (INSP_), Inktomi (INKT), Mercury Interactive (MERQ), Sonera (SNRA), VeriSign (VRSN_) and Veritas Software(VRTS_).

We are buying some of every one of these this morning as I give this speech. We buy them every day, particularly if they are down, which, no surprise given what they do, is very rare. And we will keep doing so until this period is over -- and it is very far from ending. Heck, people are just learning these stories on Wall Street, and the more they come to learn, the more they love and own! Most of these companies don't even have earnings per share, so we won't have to be constrained by that methodology for quarters to come.

 

Thu, 06/02/2011 - 10:22 | 1332144 FLETCH
FLETCH's picture

In the other positive economic news.... the sun came up this morning!

Thu, 06/02/2011 - 10:19 | 1332149 cxl9
cxl9's picture

It's almost like everyone was counting on an economic recovery that failed to materialize. Maybe people mistakenly put their faith in a corrupt government and rotten financial institutions, and really none of the systemic problems were ever legitimately addressed. Who could have known.

Thu, 06/02/2011 - 10:23 | 1332150 SheepDog-One
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No amount of printed up fiat can paper over the reality of channel stuffed bankrupt nation.

Thu, 06/02/2011 - 10:24 | 1332154 gookempucky
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That axetra 3 bill was from the pipeline being stuffed by GM

Thu, 06/02/2011 - 12:45 | 1332755 SoCalBusted
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Soon we will be able to buy a GM car with no money down at 0% financed by Ally Bank.

Thu, 06/02/2011 - 10:24 | 1332164 jkruffin
jkruffin's picture

It is about time for the Euro to take a huge plunge!!!  The prop job on Euro is asinine.

Thu, 06/02/2011 - 10:35 | 1332189 Moe Howard
Moe Howard's picture

Unexpected, suprising, transitory. - Banksters everywhere.

Thu, 06/02/2011 - 10:37 | 1332192 bankonzhongguo
bankonzhongguo's picture

There is no economy in the US anymore.  Its millions of discarded washed-up workers sitting at Starbucks pretending to be looking for a job or "consulting."

The only growth industry is internal security - watching poor people get poorer and waiting for the STHTF - controlling the herd. 

Controlling/watching your travel, listing to your calls, frisking your kids, lock-down drills at schools.  Please re-read '1984.' Its shocking what we have evolved into.

Was Amerika anything like this when you were growing up?

The answer is, "No."

Every month the US of Obama is looking more like the Soviet Union.  I don't think Hillary or Rick Perry have different marching orders or agendas either.

Circle the wagons and get off the debt-control grid is the only play in town.

 

Thu, 06/02/2011 - 10:55 | 1332280 trav7777
trav7777's picture

Was it looking LESS like the Soviet Union under Busch or Clitton?

It is Clockwork Orange.  Many years ago, I wrote a paper on this book with the thesis that this is what society looks like in the absence of middle class values.  Got an A+ on that one.

You are either a criminal predator or a State predator in this model.  Or you are prey for both.

Thu, 06/02/2011 - 12:55 | 1332794 mayhem_korner
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Why do you insist on putting people in classes that don't exist?

Thu, 06/02/2011 - 10:39 | 1332221 treemagnet
treemagnet's picture

Inventories are growing with rising productivity - this ain't gonna continue for long.

Thu, 06/02/2011 - 10:58 | 1332282 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Where are jobs going to come from? But seriously. We can't all work for the Post Office. We can't all go off and fight in foreign wars.

Is it really the Bernank's job to create jobs? What about the useless entity of boobs and incompetents known as Congress? Aren't those guys the legislators? Shouldn't they create the framework so that free enterprise can create jobs?

The Bernank does not write rules on taxation. The Congress does. The Bernank does not write rules facilitating US Transnational Corporations offshoring jobs. The Congress does. Isn't it time Congress started actually working on ways to make the US a place where jobs are created and not destroyed? Why do you vote for these guys if they are so incompetent? Any idiot would do a better job than many of the idiots in place. Maybe not lining his own pocket, granted it takes special talents for that. But helping the country get back on its feet.

And, with all due deference to our Chinese friends, they remain pretty fully employed. Who helped to create Chinese full employment and a robust and growing economy? The US consumer did, aided and abetted by debt created by the banks. That game is over. Bernanke can devalue the USD until there is revolution in the streets, because there will be revolution in the streets before that devaluation is sufficient to begin employing significant amounts of workers due to a leveling of the labor gradient with Asia. All the while, Transnational corporate profits rise. Are they paying tax on this money? If they have helped to create the massive government debt taken on to mollify the un and under employed masses here, by continually gutting jobs, don't they have an obligation to help support the situation they have created? Like GE in the 60s, dumping toxic chemicals wantonly into the Hudson River. Eventually they have to clean it up, don't they?

Thu, 06/02/2011 - 10:59 | 1332283 mayhem_korner
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Inventories of .308 Pbs and 8-shot are up in my warehouse.  :D

Thu, 06/02/2011 - 11:16 | 1332344 SheepDog-One
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Hell yea! The not-so precious metals are what Im really interested in!

Thu, 06/02/2011 - 12:46 | 1332596 TruthInSunshine
TruthInSunshine's picture

Extremely few humans will be required for production of goods soon. In fact, even many more services will be replaced by machines (ATMs and self-checkout lanes at stores are the tip of the iceberg).

Soon, robots will be the engineers, designers, draftsmen, architects and visionaries.

When you get your prostate check in the year 2035, it will be a more refined and advanced version of the many copies of Watson from Jeopardy shoving his hydraulically controlled hand up your ass and interpreting the results.

Thu, 06/02/2011 - 12:16 | 1332648 flyr1710
flyr1710's picture

anybody know what ism services expecation is for tomorrow?  and if applicable pre and post yesterday

Fri, 06/03/2011 - 00:50 | 1334893 Element
Element's picture

but ... but ... the green shoots ... the surging demand ... the factory orders ... ... what? ... no customers?!! ... wtf?  ... this can't be right Ben! ... you said $800 billion ...

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