U.S. factory orders saw a 4.3 percent surge in March, following a revised 0.5 percent rise (previously +0.6 percent) in February, and a 1.8 percent jump in January. This is slightly below expectations in the Econoday survey of forecasters for a 4.5 percent spike in orders.

The flood of orders came in ahead of the April's implementation of punitive tariffs. New orders excluding transportation shrank by 0.2 percent, following a 0.3 percent rise in February. Orders were up 4.8 percent excluding defense, ramping up from a 0.4 percent rise in February.

Manufacturers' shipments saw a 0.1 percent contraction in March following a 0.7 percent increase in February and were flat excluding transportation compared to a 0.4 percent uptick in February.

With durable goods orders up strongly, factory orders expected to show a big gain at 4.5 percent.

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.