US Factor Orders: the outlook isn’t brilliant - Wells Fargo

In the US, after the NFP, the Factory Orders reports was released (+1.9%). According to analysts from Wells Fargo, the data continues to show that the manufacturing sector is struggling to get its footing.

Key Quotes:

“Factory orders notched a modest 1.9 percent gain in July. It was a smaller increase than had been expected and it follows a June report that was revised to show an even larger drop than first reported.”

“The 1.9 percent increase in July follows back-to-back declines in prior months. The give-and-take nature of orders this year reflects a manufacturing sector that is struggling to get its footing. The overall level of factory orders is up just 1.4 percent year to date, and down 1.2 percent vs. a year ago.”

“The modest gain in capital goods orders first reported in last week’s durables report was revised down to a smaller gain.

“After back-to-back gains in industrial production, there is evidence of firming in manufacturing. But the ISM report earlier this week showed declining activity in August. Worryingly, the ISM orders index also returned to contraction territory.”