Factory Orders
Contents
Delving into Factory Orders: A Comprehensive Overview
Understanding the Basics
Factory orders serve as vital economic indicators, reflecting the dollar value of goods produced by factories. These orders are classified into durable and non-durable goods categories by the U.S. Census Bureau.
Unraveling Factory Orders Reports
Factory orders are released monthly by the U.S. Census Bureau, providing insights into the manufacturing sector's health. This report, known as the "Full Report on Manufacturers’ Shipments, Inventories and Orders (M3)," offers a detailed analysis of new orders, unfilled orders, shipments, and inventories.
Deciphering Durable and Non-durable Goods
Durable goods, such as appliances and electronics, have a lifespan of at least three years, while non-durable goods, including food and clothing, are consumed more rapidly. Understanding these distinctions is crucial for interpreting factory orders data accurately.