Sunday, December 28, 2008

How To Read And Interpret A Weekly Economic Calendar: Factory Orders

Dollar level of new orders for manufacturing durable goods and nondurable goods.
It gives more complete information than durable goods orders which are reported one or two weeks earlier in the month. The orders data show how busy factories will be in coming months as manufacturers work to fill those orders. This report provides insight to the demand for not only hard goods such as refrigerators and cars, but nondurables such as cigarettes and apparel. In addition to new orders, analysts monitor unfilled orders, an indicator of the backlog in production.

Shipments reveal current sales. Inventories give a handle on the strength of current and future production. All in all, this report tells investors what to expect from the manufacturing sector, a major component of the economy and therefore a major influence on their investments.


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