It seems we now have manufacturing indicators moving in opposing directions. The Census Bureau reports the big gain in this month’s factory orders:
New orders for manufactured goods in May, up following two consecutive monthly decreases, increased $3.3 billion or 0.7 percent to $469.0 billion, the U.S. Census Bureau reported today. This followed a 0.7 percent April decrease. Excluding transportation, new orders increased 0.4 percent. Shipments, up five of the last six months, increased $2.3 billion or 0.5 percent to $476.0 billion. This followed a 0.2 percent April decrease. Unfilled orders, down two consecutive months, decreased $0.4 billion to $984.4 billion. This followed a 0.1 percent April decrease. The unfilled orders-to-shipments ratio was 6.25, down from 6.33 in April. Inventories, also down two consecutive months, decreased $1.4 billion or 0.2 percent to $604.5 billion. The inventories-to-shipments ratio was 1.27, down from 1.28 in April.