Factory orders rose 1.6 percent in March matching Econoday's consensus. Capital goods, however, had a slow March with core orders (nondefense ex-aircraft) rising only 0.1 percent which is downwardly revised from 0.2 percent in last week's advance data on the durables side of this report. Nondurable orders, which are posted in today's report but with limited detail, rose 0.6 percent after February's 1.7 percent gain (durable orders are unrevised at plus 2.6 percent).

Commercial aircraft posted strong back-to-back gains that, however, followed a steep fall in January tied to Boeing's door-plug plunge. Motor vehicles posted a strong March rise after flat results the prior two months. Excluding transportation, orders rose 0.5 percent in March and 1.1 percent in February, the former upwardly revised from a 0.2 percent gain in the advance report. Furniture also posted strong gains in March and February in a positive for the housing sector.

Total shipments rose 0.3 percent in March, unfilled orders rose a helpful 0.4 percent, while inventories remained flat. Today's report leaves the Relative Performance Index at minus 8 both overall and when excluding inflation data to indicate that recent US data, on net, are coming in slightly on the low side of Econoday's consensus ranges.

Factory orders are expected to rise 1.6 percent in March versus February's 1.4 percent rise. Durable goods orders for March, which have already been released and are one of two major components of this report, rose 2.6 percent on the month and saw gains concentrated in aircraft and vehicles.

Factory orders represent the dollar level of new orders for both durable and nondurable goods. This report gives more complete information than the advance durable goods report which is released one or two weeks earlier in the month.

Investors want to keep their fingers on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more moderate growth which is less likely to cause inflationary pressures. By tracking economic data like factory orders, investors will know what the economic backdrop is for these markets and their portfolios. 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.