| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | 1.3% | 0.4% to 2.1% | 2.7% | -1.3% | -1.2% |
Highlights
Total new orders for factory goods is up 2.7 percent in November after declining 1.3 percent in October. The November rise is well above the consensus of up 1.3 percent in the Econoday survey of forecasters. The November increase is entirely due to a 5.3 percent rise in new orders for durable goods while nondurables orders are flat from the prior month.
Durables orders got a boost from a 14.7 percent increase in transportation which is fueled by a 97.6 percent jump in nondefense aircraft orders. Excluding transportation, durables orders are up only 0.2 percent on a mixed performance in other categories.
Nondurables orders were restrained aby a 2.5 percent decrease in petroleum and coal products related to lover oil prices. The most notable increase in other categories is a 1.6 percent rise in pharmaceuticals and medicines.
The hike in transportation orders increased unfilled orders 1.4 percent in November after a rise of 0.2 in October. However, excluding transportation, unfilled orders are up 0.3 percent in both November and October. Backlogs of orders to fill are modest.
There remains little upward pressure for inventory accumulation. All inventories are up a scant 0.1 percent in November and are flat for October.
Market Consensus Before Announcement
Orders expected to reverse the 1.3 percent drop of October with a 1.3 percent increase in November.
* Originally scheduled for 1/7/2026
Definition
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.
Description
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.
