US Factor Orders: Data from manufacturing sector continues to show improvement - Wells Fargo

According to analysts from Wells Fargo, today Factor Orders report, shows that the manufacturing sector continues to improve, although at a  slower rate than sentiment indicators alone would indicate.

Key Quotes: 

“Factory orders rose 1.2 percent to start 2017. On balance, the hard data in the manufacturing sector continue to show improvement, although the pace has been slower than sentiment indicators alone would indicate.”

“Factory orders rose 1.2 percent in January, boosted by sizable jumps in the notoriously volatile aircraft components for both defense and nondefense.  Nondurable shipments rose 0.4 percent, led by growth in textile mills, apparel and petroleum and coal products. Input price pressures are building in the factory sector and have likely helped boost growth in this nominally reported indicator.”

“Core capital goods orders fell 0.1 percent, a smaller decline than indicated in the advanced report, but this improvement was largely offset by downward revisions to December’s reading.”