US Factory Orders Jump 1.4% in January, Beating Estimates

Source: US Census Bureau

New orders for US-made goods rose more than expected in January, signaling a continued expansion in manufacturing despite supply challenges. DXY up +0.42%, EUR USD down -0.50%

• The factory orders increased 1.4% in January. Data for December was revised sharply higher to indicate orders rising 0.7% rather than falling 0.4% as initially reported.
• Manufacturing is being held back by businesses rebuilding their inventories, even though a tight supply chain remains a huge challenge.
• Shipments of manufactured goods rose 1.2% in January after increasing 0.7% in December.
• Inventories at factories rose 0.7% and unfilled orders increased 0.9% after expanding 0.8% in the previous month.
• Orders for non-defense capital goods, excluding aircraft, rose 1.0% in January rather than 0.9% as reported the previous month.
• Shipments of the capital goods increased at an unrevised pace of 1.9% in January.