New orders for all factory goods were down 10.3% in March with durables orders down 14.7% and nondurables down 5.8%. Durables orders were dragged lower by transportation (-41.3%) where nondefense aircraft orders were sharply lower (-296.2%). Nondurables decreased mainly due to petroleum and coals prices (-30.3%). The overall decline was not materially different from market expectations and backs up other data about weak orders for the month.
Unfilled orders were down 2.0% in March. There was a significant decline in nondefense aircraft orders in the pipeline (-4.7%) as Boeing suffered another wave of cancellations on its civilian orders. However, defense aircraft orders have not entirely disappeared and that was up somewhat in March (+3.0%).
The dollar value of shipments was down 5.2% in March as lack of orders meant less to ship out as well as price declines in some categories like petroleum.
Inventories declined 0.8% in March, continuing a string of decreases that was a combination of lack of imported goods as well as caution in the face of high levels of economic uncertainty.
Disclaimer: Whetstone Analysis provides commentary as a service to its subscribers. Whetstone Analysis is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site. While the information contained within the site is periodically updated and every effort is made to ensure its accuracy, no guarantee is given that the information provided in this Web site is correct, complete, and up-to-date. Click here to read our full Disclaimer.