Factory Orders MoM
What is Factory Orders MoM?
Factory Orders (Manufacturers' Shipments, Inventories, and Orders) is a monthly report from the US Census Bureau measuring new orders, shipments, and unfilled orders at US manufacturers. It covers both durable goods (lasting 3+ years) and non-durable goods (consumables). The data provides a comprehensive picture of manufacturing demand and pipeline activity.
Why does it matter for investors?
Factory Orders reflect the health of manufacturing demand from both domestic and foreign buyers. Unfilled orders (backlog) signal future production activity — a rising backlog means factories will be busy for months ahead. The shipments component feeds directly into GDP calculations. Core capital goods orders (excluding defense and aircraft) are the most closely watched component as a proxy for business investment.
What to watch for
- ›Month-over-month change vs. consensus estimate
- ›Core capital goods orders ex-defense, ex-aircraft (capex proxy)
- ›Unfilled orders (backlog) trend — indicates future production strength
- ›Inventories-to-shipments ratio (rising ratio can signal demand slowdown)
- ›Revisions to prior month Durable Goods orders (released 2 weeks earlier)
When is the Factory Orders report released?
Factory Orders are released by the Census Bureau at 10:00 AM ET, typically on the first business day of the month that is 5 weeks after the reference month.
Market Reaction
QQQ & SPY price change ±5 trading days around this event
Source: Yahoo Finance