US Census says manufacturing new orders improved. Our analysis says sales did improve, BUT remain in contraction. Unadjusted unfilled orders’ growth remains in CONTRACTION year-over-year – but this is likely due to deflation in this sector.
Part of the reason for the poor growth is that the data is not inflation adjusted (deflation is occuring in this sector) – however, all the gains this month are wiped away as deflation lessened. Civilian and defence aircraft was the major tailwind – and most of the data was soft..
3 Month Rolling Average – Unadjusted Manufacturing New Orders (blue line), Inflation Adjusted New Orders from the Unadjusted Data (red line)
US Census Headline:
Econintersect Analysis:
Seasonally Adjusted Manufacturing Value of New Orders – All (red line, left axis), All except Defense (green line, left axis), All with Unfilled Orders (orange line, left axis), and all except transport (blue line, right axis)
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