Highlights
Factory orders showed solid improvement in April, up 0.7 percent from March and led by a 1.7 percent surge in durable orders that more than offset a 0.1 percent decline in orders for non-durables. Factory destocking continues with inventories down 1.0 percent, a big plus as manufacturers re-align their stocks to meet the lower level of demand. Shipments fell 0.2 percent in the month though the rise in new orders suggests improvement in output in the months ahead. One negative is another decline in unfilled orders, down 1.2 percent in the month.

These results for April, especially in light of Monday's solid incremental improvement in the ISM manufacturing report for May, do support expectations that the manufacturing sector is carving out a bottom and may begin to show significant recovery in the second half of the year.

Market Consensus before announcement
Factory orders fell 0.9 percent in March showing an even mix between a 0.8 percent decline in durables (second estimate) and a 1.0 percent decline in nondurables. More recently, durables orders for April rebounded 1.9 percent in April, following a revised 2.1 percent drop in March. The latest durables number will make for a boost in overall new factory orders in April unless there is an unexpected plunge in nondurables orders-which is not likely given recent price hikes for oil.

2009 Release Schedule

Released On: 1/6 2/5 3/5 4/2 5/1 6/3 7/2 8/5 9/2 10/2 11/3 12/4 Release For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct