Unexpected: Factory Orders Drop in April

Unexpected: Factory Orders Drop in April

U.S. factory orders dropped 0.6 percent in April and have fallen for three of the past four months, the U.S. Census Bureau reported Monday.

After falling 2.1 percent in March — revised from a previous estimate of 1.5 percent — factory orders fell an additional $2.9 billion to $466 billion in April, the bureau said.

Excluding transportation, new orders fell 1.1 percent, as durable goods orders fell by $100 million to $215.2 billion.

Orders for non-durable goods also fell 1.1 percent or by $2.9 billion to $250.8 billion.

After four consecutive months of increases, shipments of manufactured goods fell 0.3 percent, or by $1.5 billion, to $473.2 billion.

Unfilled orders, down 0.1 percent to $985.4 billion, dropped in April following 27 consecutive months of increases. Unfilled transportation orders had the largest decline, off 0.3 percent or $1.6 billion to $566.5 billion.

Inventories of durable goods, up 27 of the past 28 months, rose 0.3 percent to $364.2 billion in April. Inventories of non-durable goods, down two consecutive months, fell 0.5 percent to $243.1 billion.