Factor Orders Rise for Third Consecutive Month

- Factory Orders for April rose .3% versus estimates of a .7% gain and an upwardly revised 4.1% increase in March.

BOTTOM LINE: Orders placed with American factories rose less than forecast in April, suggesting businesses may still be working inventories down before restocking, Bloomberg reported. Orders for capital goods excluding aircraft and military equipment, a gauge of future business investment, rose 2.1% versus a 4.6% gain in March. Bookings for non-durable goods, including food, petroleum and chemicals, fell .2% in April versus a 2.9% rise the prior month. Businesses now have enough goods to last 1.24 months at April’s sales pace, down from 1.25 months the prior month. I continue to believe manufacturing has bottomed and will add to economic growth this quarter after subtracting from growth meaningfully in 1Q.