Daily Economic Update for January 04, 2011Presentation Transcript
Daily Economic Update
The Census released new data on factory orders this morning which rose 0.7% between October and November. This increase was stronger than expected and reflected improved demand for both durable and non-durable goods. Strength in fabricated and primary metals along with computers and electronics led the report higher. Industrial machinery and volatile aircraft orders fell sharply. Non-durable goods rose a healthy 1.7%, while orders for capital goods excluding aircraft rose 1.1%.
Shipments of goods rose, while unfilled orders and total inventories eased suggesting the need for orders in the future.
November’s strong reading for factory orders indicates that businesses are investing again and buying capital goods. This trend is important as it suggests confidence on the part of business that will drive the expansion of the economy and hiring. Job growth is key for the health of the housing market.