US Factory Orders Post Biggest Decline Since March 2009

Tyler Durden's picture


That March factory orders declined 1.5% was not very surprising: the market was expecting a decline of 1.6%. However, this is not good news as the prior February increase of 1.3% was revised lower to 1.1%, netting out as a negative two month change. Where this number was troubling is that this 2.6% swing brought the index to its biggest decline since March 2009 when the pumping of trillions started.

And some other observations from the report:

Shipments, up ten consecutive months, increased $3.3 billion or 0.7 percent to $466.2 billion. This followed a 0.1 percent February increase.


Unfilled orders, up twenty-three of the last twenty-four months, increased $0.5 billion or 0.1 percent to $930.6 billion. This followed a 1.2 percent February increase. The unfilled orders-to-shipments ratio was 6.17, down from 6.24 in February.


Inventories, up twenty-nine of the last thirty months, increased $1.9 billion or 0.3 percent to $618.4 billion. This was at the highest level since  the series was first published on a NAICS basis in 1992 and followed a 0.3 percent February increase. The inventories-to-shipments ratio was 1.33, unchanged from February.

And so on. This will shortly usher follow through revisions to Q2 GDP forecasts which is nearly half way into the quarter with less than a bang.

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Wed, 05/02/2012 - 10:13 | 2391013 sbenard
sbenard's picture

Factory catastrophe!

Wed, 05/02/2012 - 10:20 | 2391036 Oh regional Indian
Oh regional Indian's picture

The sad truth, and I cannot say it in Chinese, but :

All your factories are belong to us!

Chindia, giving it to the old manufacturing world on the Chin.


Wed, 05/02/2012 - 10:24 | 2391052 Randall Cabot
Randall Cabot's picture

It's called The New World Order.

Wed, 05/02/2012 - 10:24 | 2391054 Careless Whisper
Careless Whisper's picture

The Careless Whisper Morning Update & Threadjacking

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San Francisco Fires Transit Worker For Helping Poor Orphaned Boy Ride Bus To School Without Paying For Discarded Tickets






Wed, 05/02/2012 - 11:42 | 2391325 SilverTree
SilverTree's picture

Thank you CW, I really do appreciate your Updates & Threadjacking. I always keep a look out for them.

Wed, 05/02/2012 - 11:43 | 2391331 walküre
walküre's picture

All your factories are belong to us!

We will see about that. In the new People's Republic of America, all production assets belong to the people. Try to pry it from our tight worker's grips. NWO management will be replaced by Representatives of the Working Man and Woman.

There is no other solution. We're top heavy and need to feed 330 million people. Screw the Chinese and the golden dragons they rode in on. They bought our assets with obscene profits from decades of slave labor. We need to look after ourselves now. Let the Chinese worker fight in their backyard. Globalism be damned.

Wed, 05/02/2012 - 10:47 | 2391141 krispkritter
krispkritter's picture

A factastrophe? Oh sorry, that's referring to Krugman:

Wed, 05/02/2012 - 10:55 | 2391177 jmcaule4
jmcaule4's picture

My top wave counts as well as when the expect the next round of QE here:

Wed, 05/02/2012 - 10:14 | 2391018 DeadFred
DeadFred's picture

I'm hoping for a down day today. That will give an aesthetically pleasing topping pattern for the S&P futures, three curled fingers surrounding an index finger standing straight up.

Wed, 05/02/2012 - 10:15 | 2391022 DavidJ
DavidJ's picture

Launch QE3!  the stock market must be saved!!!

Wed, 05/02/2012 - 10:15 | 2391027 buzzsaw99
buzzsaw99's picture


Wed, 05/02/2012 - 10:50 | 2391156 CrashisOptimistic
CrashisOptimistic's picture

"Where this number was troubling is that this 2.6% swing brought the index to its biggest decline since March 2009 when the pumping of trillions started."


Tyler, you do have this right.  It's flow, not stock.  If QE isn't perpetual, there is no underpinning of a post Peak world.

Wed, 05/02/2012 - 10:15 | 2391024 bankonzhongguo
bankonzhongguo's picture

It's their economy.

We just live in it.

Wed, 05/02/2012 - 10:37 | 2391109 FlyoverCountryS...
FlyoverCountrySchmuck's picture

I was being a bit nostalgic today, and was watching an NBC Evening News video from Summer 2006, with Nancy Pelosi screaming that creating 'Just' 450,000 jobs a month was the "WORST ECONOMY SINCE THE GREAT DEPRESSION!".


How could the sheeple have been so stupid as to swallow down spewing loads like this?

Wed, 05/02/2012 - 10:18 | 2391031 ebworthen
ebworthen's picture

Does this mean channel stuffing has limits?

Someone tell Krugman and Liesman for me please.

Wed, 05/02/2012 - 10:20 | 2391037 bobola
bobola's picture

interesting story about the Chicago Fed head wanting to keep pumping money into the economy;

Interesting how these folks don't care about debt growing as long as the economy is growing.  Well, when the economy stop growing and the debt/GDP ratio goes haywire, what then..?? 

At some point in the future, when the economic picture looks a lot rosier, paying down the debt pile will be a priority, right..??

Are we heading for the same corner Japan has backed itself into - forced to keep interest rates at or near zero to afford servicing debt..??  

Wed, 05/02/2012 - 10:22 | 2391045 LawsofPhysics
LawsofPhysics's picture

come on bobola, it has never been the intention to ever pay back any of this debt, only to enslave everyone on the other side of it.

Wed, 05/02/2012 - 11:26 | 2391272 bobola
bobola's picture


You could be right. 

Greek and Roman history has shown that when most of the wealth eventually ends up in the hands a very few, then there has to be a reset.

Solon in Greece levied big taxes on the wealthy to move the money back to the common folk.

The Romans didn't do that and had 100 years of civil strife.

Another option is hyper-inflation to wipe away the debt.  But before that happens the wealthy will be trading their fiat for other stuff that will hold value, such as farmland or oil, gas or water rich land.  That may the the key to knowing when the shite will hit the fan..........


Wed, 05/02/2012 - 10:21 | 2391039 LawsofPhysics
LawsofPhysics's picture

Awsome, it seems one can never "print" enough demand in the real economy.   FAIL.  Now about those wages.

Wed, 05/02/2012 - 10:21 | 2391040 williambanzai7
williambanzai7's picture

It is hoped that this will be offset by asteroid mining operations.

Wed, 05/02/2012 - 10:28 | 2391077 trilliontroll
trilliontroll's picture

and the coming Quadrillion trade volume with the martians...

Wed, 05/02/2012 - 11:56 | 2391366 thecoloredsky
thecoloredsky's picture

and then teh martians nationalize them. or would it be solar systemalize?

Wed, 05/02/2012 - 10:21 | 2391041 lolmao500
lolmao500's picture

Bullish :

500 Kiloton German Hydrogen Bomb Goes Missing

Wed, 05/02/2012 - 10:35 | 2391090 Randall Cabot
Randall Cabot's picture

"There are several possible scenarios:


  • Germany is a nuclear power in violation of international treaties and both Germany and the US are lying
  • The German government is in violation of international treaties and is selling or transfering nuclear weapons to unknown third parties
  • Terrorists have stolen a nuclear weapon that Germany was holding illegally
  • Germany is involved in a terror plot aimed at a third party, Iran, the United Kingdom or the United States
  • The submarine in question may or may not be one Germany is giving to Israel, this one with a “special enhancement” which, as we had questioned earlier, might be used against Iran, the United Kingdom or United States."

500 kilotons should be enough for israel to take out Cairo and get that natural gas flowing again and of course blame it on "terrorists".

Wed, 05/02/2012 - 10:44 | 2391132 magpie
magpie's picture

Ze Germans nuking Alexandria, yes that movie i have seen before. But Cairo ?

Wed, 05/02/2012 - 10:23 | 2391046 Bay of Pigs
Bay of Pigs's picture

Actually, the "pumping" of 7.7T began in Dec 2008 when nobody knew it was happening. By the time the stress test came along in March 2009 (results released in May 2009), Geithner had already recapitalized the TBTF banks and other financial institutions around the world (source Bloomberg  courtesy of the FOIA).

Suspending FASB 157 did the trick as well.

HOCUS POCUS bitchez...


Wed, 05/02/2012 - 10:22 | 2391047 SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

can you say malinvestment?

Wed, 05/02/2012 - 10:23 | 2391050 adr
adr's picture

So inventories are almost double shipments, oh thats good...

I'm sure accounting rules allowing inventory to be marked as an asset has nothing to do with it.

The weird thing is unfilled orders, those must be cancelled orders because with the amount of inventory availble all orders should be filled.

Something isn't right. US manufacturing must be working on the bridge to nowhere concept. Somebody is placing orders, but never wants to actually take delivery.

Wed, 05/02/2012 - 11:01 | 2391201 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture

The Fed?

Wed, 05/02/2012 - 11:55 | 2391364 Quinvarius
Quinvarius's picture

The curtain is there for reason.  The reason is not "to look behind it".

Wed, 05/02/2012 - 10:23 | 2391053 SheepDog-One
SheepDog-One's picture

OK so pumpin in of trillions doesnt what now?

Wed, 05/02/2012 - 10:26 | 2391065 Oh regional Indian
Oh regional Indian's picture

Just good, old fashioned pumping SD1. 

Q is, is one a pumper or a pumpee.


Wed, 05/02/2012 - 11:01 | 2391195 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture


Wed, 05/02/2012 - 10:28 | 2391075 lolmao500
lolmao500's picture

Bullish, it can only go up!

/CNBC shill

Wed, 05/02/2012 - 10:29 | 2391082 youngman
youngman's picture

But But But .....the ISM number was so good......that kind of sticks out like a boner in Math class in Junior High

Wed, 05/02/2012 - 11:24 | 2391263 SmoothCoolSmoke
SmoothCoolSmoke's picture

Damn, I miss those Jr. High boners.... come outta nowhere.... hard as stone.  You could hang a wet beach towel on 'em!

Wed, 05/02/2012 - 10:31 | 2391086 Jason T
Jason T's picture

the manufacturing company I used to work for, it closed in 2007.. half the facilities are growing weeds all around it and the other half has been converted into ..self storage units.

The US economy is a basket case.

Wed, 05/02/2012 - 10:45 | 2391135 FlyoverCountryS...
FlyoverCountrySchmuck's picture

"the manufacturing company I used to work for, it closed in 2007.. half the facilities are growing weeds all around it and the other half has been converted into ..self storage units."


Been that way in the Midwest since the passage of the Clean Air Act, and the 1975 UAW strike, in the mid-70's. Democrat policies have been outforcing America's jobs for 40+ years. Did you really think all of this free schit was going to be FREE?


Wed, 05/02/2012 - 11:00 | 2391191 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture

"Democrat & Republican policies have been outsourcing America's jobs..."


There. Fixed it for ya.

Wed, 05/02/2012 - 11:25 | 2391271 Stack Trace
Stack Trace's picture

By your omission of Republicans you show your true colors as an establishment man. Sorry but no part of the current system is going to correct the problems that are causing this regrettable slide. You need to abandon the illusions provided to you first before you can see the path to freedom.

Wed, 05/02/2012 - 10:40 | 2391117 catalyst21
catalyst21's picture

This was certainly predictable.  Maybe if the idiots in Washington had not pulled forward demand last year by allowing businesses a one time 100% expense of capital purchases (aka another cash for clunkers move) this would not have happened.  No mention of this in the stupid main stream media.

Regardless of whatever demand there was for manufacturered goods being sucked forward into 2011, the money supply is contracting and demand is clearly declining.  Time for QE4 or Obumbo is in trouble. 

Wed, 05/02/2012 - 10:47 | 2391143 SheepDog-One
SheepDog-One's picture

And then even WITH 'QE4' or whatever, how is $5 gas going to go over for the Emperors election? 

I mean, there IS a real world out there still, no matter what the bobble-heads tell us to the contrary. This idea that if stocks are higher, then everyone loves Obummer is really pretty silly, and QE means 'hand free money to the rich' least sheeple know that, they know when theyre getting screwed. 

Wed, 05/02/2012 - 10:43 | 2391128 firstdivision
firstdivision's picture

But, but, but, but, the ISM report was outstanding....

Wed, 05/02/2012 - 10:54 | 2391175 MFL8240
MFL8240's picture

They lied!...again!

Wed, 05/02/2012 - 10:51 | 2391159 Shizzmoney
Shizzmoney's picture

DOW expected to be up 1,056,578,946 pts today

Does it even fucking matter anymore?

Wed, 05/02/2012 - 11:02 | 2391202 SheepDog-One
SheepDog-One's picture

A bit better than expected! 

Wed, 05/02/2012 - 11:08 | 2391224 catalyst21
catalyst21's picture

+1  NO, it clearly doesn't fucking matter anymore, between the bots and the PPT they just keep putting newly created fiat into the Ponzi.  What does it matter to them they get the fiat for practically nothing and then they can lever it!

Wed, 05/02/2012 - 11:20 | 2391251 SmoothCoolSmoke
SmoothCoolSmoke's picture

My Lord.  ADP + Factory Order disaster.  The amount of money the Fed must be burning through to keep the Dow at only -50 must be obscene.

Buck Frenankie!

Wed, 05/02/2012 - 11:43 | 2391328 djsmps
djsmps's picture

No even a mention about factory orders on Marketwatch,

Wed, 05/02/2012 - 12:30 | 2391467 FlyoverCountryS...
FlyoverCountrySchmuck's picture

Of course not...

It doesn't fit the Democrat/Mainstream Media-approved CURRENT TRUTH, which can be very different from yesterday's Current Truth.

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