| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | 0.1% | -0.6% to 0.9% | 0.1% | -0.7% | -0.4% |
Highlights
Data delayed by the federal government shutdown shows U.S. factory orders rebounded by 0.1 percent in January, not enough to erase a revised 0.4 percent decline in December (revised up from -0.7 percent) following a 2.7 percent jump in November. January's reading matched expectations in the Econoday survey of forecasters.
The uptick in orders came as a 0.8 percent contraction in new orders for transportation equipment held back the headline number. New orders excluding transportation rose 0.4 percent, following a 0.6 percent rise in December. They were up 0.4 percent excluding defense, not enough to overshadow a 0.9 percent drop in December.
Manufacturers' shipments saw a 0.5 percent increase in January following a 0.7 percent bump in December and rose 0.4 percent excluding transportation compared to a 0.5 percent bounce in December.
Market Consensus Before Announcement
The consensus sees orders nearly flat with an increase of 0.1 percent.
* Originally scheduled for 3/5/2026
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.
