Factory orders fell 0.4 percent in April as a 0.2 percent rise in nondurable goods was not enough to offset a downwardly revised drop in durables. Weaker core capital goods and ex-transport orders led the revisions.
Dimmer Readings on April Durable Goods Orders
- The brightening picture of the factory sector painted by last week’s durable goods report was dimmed with today’s updated report. April durable goods orders were first reported to have fallen 0.5 percent, but revisions show orders fell by 1.0 percent.
- The 0.5 percent rise in durable goods orders ex-transportation was revised away, with orders now reported to have fallen 0.3 percent. Core orders are also now reported to have fallen.
Is It Really That Bad?
- Nondurable goods shipments recovered 0.2 percent in April, helped by a rebound in chemical and petroleum & coal products.
- We believe the orders data, reported in nominal terms, are still being influenced by price dynamics more than usual. The rise in the timelier May ISM manufacturing index, particularly the new orders component, however, suggests that activity in the factory sector is once again trending higher.
Recommended Content
Editors’ Picks
AUD/USD retargets the 0.6600 barrier and above
AUD/USD extended its positive streak for the sixth session in a row at the beginning of the week, managing to retest the transitory 100-day SMA near 0.6580 on the back of the solid performance of the commodity complex.
EUR/USD keeps the bullish bias above 1.0700
EUR/USD rapidly set aside Friday’s decline and regained strong upside traction in response to the marked retracement in the Greenback following the still-unconfirmed FX intervention by the Japanese MoF.
Gold advances for a third consecutive day
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Bitcoin price dips to $62K range despite growing international BTC validation via spot ETFs
Bitcoin (BTC) price closed down for four weeks in a row, based on the weekly chart, and could be on track for another red candle this week. The last time it did this was in the middle of the bear market when it fell by 42% within a span of nine weeks.
Japan intervention: Will it work?
Dear Japan Intervenes in the Yen for the first time since November 2022 Will it work? Have we seen a top in USDJPY? Let's go through the charts.