Highlights
Factory data show deep strength in March and include convincing upward revisions to February. Gains are evenly distributed between durable and nondurable goods and across many industries where autos are showing special strength. Quarter-to-quarter factory shipments picked up 5.4 percent in the first quarter, a tough pace to keep up though yesterday's April report from the ISM, where backlogs and inventories were especially strong, points to a good start for the second quarter.

Today's report is headlined by a 3.0 percent rise for new orders with February revised to a 0.7 percent gain from a 0.1 percent decline. Shipments, which ultimately of course track new orders, rose 2.7 percent in March following a 0.6 percent gain in February and a 1.7 percent gain in January. Gains in shipments explain the gains underway for factory employment. Note that these data are based in dollars and that levels are likely being inflated by a small but rising pass through of costs from supplier to customer.

Market Consensus before announcement
Factory orders in February slipped 0.1 while shipments decelerated to a rise of 0.3 percent. Meanwhile, inventories continued to build, up 0.8 percent for the month. More recently, new factory orders for durables surged 2.5 percent in March after rising a revised 0.7 percent the month before (previously estimated at down 0.6 percent).

2011 Release Schedule

Released On: 1/4 2/3 3/4 3/31 5/3 6/2 7/5 8/3 8/31 10/4 11/3 12/5 Release For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct