US Factory Orders April Rise Disappoints

New orders for factory goods rose in April, but not enough to reverse the prior month’s plunge, adding to signs of a slowdown in manufacturing activity.

The Commerce Department on Wednesday said new orders for manufactured goods increased 1 percent. March’s orders were revised to show a 4.7 percent decline instead of the previously reported 4.9 percent tumble.

Economists polled by Reuters had forecast orders received by factories rising 1.5 percent.

Manufacturing has been hit by a combination of deep government spending cuts and slowing global demand, especially in China and the recession-hit Europe.

Data on Monday showed a gauge of national factory activity contracted in May for the first time in six months, dragged down by declining orders.

This suggests the weakness in factory activity, also highlighted by a drop in industrial production in April, will probably persist for some time.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza