Highlights
Data on the factory sector show wide strength in July led by a 2.8 percent rise for new orders in what is a robust snap back from a 0.5 percent decline in June. The July gain is led by a 4.1 percent surge in durable goods orders (revised 1 tenth lower from last week's advance reading) and includes a 1.5 percent rise for nondurable goods which got a boost from petroleum and coal.

A second big jump for aircraft and a solid rise for motor vehicles did skew the gain for durable goods where, excluding transportation, orders nevertheless still rose with a 0.7 percent gain. Capital goods readings are mixed, showing a big jump in orders when including aircraft but a big dip when aircraft are excluded.

Other readings include a big 2.0 percent jump in total shipments, where however aircraft are once again skewing the numbers upward. But unfilled orders are a major positive with a 0.8 percent gain on top of a 0.4 percent gain in the prior month. Inventories show accumulation following two prior months of slight draws.

Data on the manufacturing sector have been bumpy in recent months but today's report, despite the distortions tied to aircraft and despite general weakness in export markets, points to the sector's return as a central driver for the economy.

Market Consensus before announcement
Factory orders in June declined 0.5 percent. Order declines for petroleum & coal sent non-durable goods down 2.0 percent. Orders for petroleum & coal fell 2.9 percent for their largest drop in nearly 3-1/2 years. Durables orders gained 1.3 percent. However, the gain was lopsided, centered in aircraft where any one month's orders can swing sharply. More recently, durable goods orders jumped 4.2 percent in July, largely on aircraft orders.

2012 Release Schedule

Released On: 1/4 2/3 3/5 4/3 5/2 6/4 7/3 8/2 8/31 10/4 11/2 12/5 Release For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct