What are factory orders?

Factory Orders is a monthly indicator of economic conditions in the manufacturing sector, which estimates the total value of the dollar of new orders, unoccupied orders, sending orders and the total inventory from manufacturers throughout the United States. Considered as a leading indicator of economic activity, consistently growing factory orders indicating the expanding economy and the possibility of growing inflation; Constantly decreasing factory orders indicate slowing or contraction in economic activities. Based on the national survey conducted by the People in the US Census, factory orders are divided into two main categories: orders for durable goods and orders for durable goods. Durable goods are goods that can be used for at least three years, such as cars, appliances, business equipment and bricks. Insufficient goods include food, clothing, tobacco and other consumer products.

The US Department of Trade issues two press releases every month on the basis of data collectedCH for the order of orders. The Report of the preliminary report on the consistency, supplies and orders of the goods and orders manufacturers, commonly known as a report on durable goods, is published about 18 working days after the end of each month. The report on complete factory orders, officially known as manufacturers' consignments, supplies and message , is published about 23 days after the end of each month.

The

Census Office in the US collects data reported by manufacturers with an annual shipment of $ 500 million or more. In the production sector, according to the definition, companies that use chemical, mechanical or physical means to transform materials, substances or components for new products are used. Manufacturers can be units or divisions of larger companies whose business produces specific types of products or products or manufacturers of goods in any of the 89 industrial categories. To the KatugoData risk is used by a six -digit classification of the North American industry (NAICS).

Based on the raw data from the Census Office, the US Office for Economic Analysis (Bea) draws up and calculates factory orders of the series of economic indicators, including adjustment of seasonality data. Bea also uses this data to estimate gross domestic product (GDP), a standard measure of total production of goods and services in the US economy. Federal Reserve Council, the Ministry of Finance of the USA and the Council of Economic Advisors to formulate fiscal and monetary policy, also use data on factory orders. Information is also widely used by economists, financial industry experts and investors to analyze current economic conditions and predict future economic conditions, performance and economic growth.