Highlights
May was a good month for manufacturing as orders jumped 1.2 percent to an adjusted $347.9 billion in the month. New orders for durable goods rose 1.8 percent while orders for non-durable goods, boosted only modestly by higher oil-related prices, rose 0.7 percent. May was a strong month for aircraft and defense excluding which orders were still very solid: machinery, a sizable group at $22.2 billion, was up 7.1 percent in the month while the larger computers & electronics group, always fighting against price depreciation, posted a rare gain.

Outside of new orders, however, the news isn't so good. Destocking slowed slightly but inventories still fell 0.6 percent in May. Yesterday's ISM manufacturing report showed deepening rates of destocking in June. Optimists say inventories will have to be restocked given the strength in new orders and wider outlook for economic recovery. But pessimists can warn that businesses are drawing down stocks in case demand does not improve.

Shipments fell 0.6 percent while unfilled orders fell 0.2 percent. Despite all the contraction, the strength in new orders points to wider strength ahead. But the headline for the next report may come in flat given the flat new orders reading in yesterday's ISM report. May in many ways may prove a better month than June.

Market Consensus before announcement
Factory orders in April rose 0.7 percent with a jump in durables more than offsetting a slip in nondurables. Overall orders should post a sizeable increase in May, given that new factory orders for durables increased 1.8 percent in May and based on an uptrend in oil prices which should boost the dollar value of nondurables orders.

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