US May factory orders +0.3% vs +0.8% expected

<ul><li>Orders up in 5 of the past 6 months</li><li>Prior was +0.4% (revised to +0.3%)</li><li>Ex transport -0.5% vs -0.2% prior (revised to -0.6%)</li></ul><p>Revisions to durable goods:</p><ul><li>Durable goods orders +1.8% versus +1.7% preliminary. Last month +1.2%</li><li>Durable goods ex-defense +3.0% versus +3.0% preliminary. Last month +-0.5%</li><li>Durable goods ex-transportation +0.7% vs +0.6% preliminary. Last month -0.6%</li><li>Nondefense capital goods ex-air +0.7% vs +0.7% preliminary. Last month -0.2% (revised to -0.6%)</li></ul><p>It looks like the defense orders were particularly soft here, which is a timing issue rather than a sign of economic weakness. Still, note the downward revisions to the prior nondefense capital goods ex-air report, which is notable.</p><p>Overall, we know that manufacturing is soft due to the bullwhip effect so these numbers aren't a huge disappointment. On the inventory side, it looks like it will be a drag again in Q2.</p>

This article was written by Adam Button at www.forexlive.com.