Highlights
Factory orders fell 1.2 percent in April as a price-fueled 0.6 percent rise for new orders of non-durable goods failed to offset a steep 3.6 percent retreat on the durable side where the monthly declines are wide and deep. Factory shipments fell 0.2 percent to end a recovery-long string of gains. And suddenly the build underway in inventories doesn't look so great, hinting at unwanted inventory that's building, not due to anticipation of future demand, but due to lack of current demand. Inventories rose 1.3 percent in the month, right in line with the builds of the prior two months.

A plus in the report is a continued rise in backlog orders which will give manufacturers a little breathing space to wait out what hopefully will be a very brief soft spot in their recovery. Yesterday's ISM report showed an extreme correction from high rates of monthly growth to a marginal rate of growth. Yet a marginal rate of growth for this report in May would in fact be a very welcome improvement.

Market Consensus before announcement
Factory orders in March jumped 3.0 percent after a 0.7 percent gain the prior month. Shipments, which ultimately of course track new orders, rose 2.7 percent in March following a 0.6 percent gain in February. More recently, durables orders fell back in April, declining 3.6 percent, following a revised 4.4 percent jump in March. Excluding transportation, new durables orders slipped 1.5 percent, following a 2.5 percent rise in March.

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