RTTNews - While the Commerce Department released a report on Wednesday showing a notable increase in factory orders in the month of April, the increase came after a substantial decline in the previous month and came in slightly below economist estimates.
The report showed that orders for manufactured goods rose 0.7 percent in April following a revised 1.9 percent drop in March. Economists had expected orders to increase by 0.9 percent compared to the 0.9 percent decrease originally reported for the previous month.
A significant increase in orders for manufactured durable goods contributed to the growth in factory orders, with orders for durable goods increasing by 1.7 percent in April.
The increase in durable goods orders represents a downward revision from the 1.9 percent increase reported last week and compares to a revised 2.2 percent decrease in March.
Orders for transportation equipment showed a substantial increase in April, contributing to the increases in factory orders and durable goods orders. After edging down 0.1 percent in March, orders for transportation equipment jumped 5.8 percent in April.
Excluding the increase in orders for transportation equipment, factory orders increased by a much more modest 0.1 percent in April compared to a 2.1 percent decrease in March.
At the same time, the report showed that orders for manufactured non-durable goods edged down 0.1 percent in April following a 1.6 percent drop in the previous month.
The Commerce Department also said that shipments of manufactured goods edged down 0.2 percent in April following a 1.8 percent decrease in March. This marked the ninth consecutive monthly decrease in shipments.
Inventories of manufactured goods fell for the eighth consecutive month, falling by 1.0 percent in April following a 1.2 percent decrease in March.
With inventories falling at a faster rate than shipments, the inventories-to-shipments ratio edged down 1.45 in April from 1.46 in March.
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