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Factory Orders
Measures the value of new purchase orders for manufacturing goods, both durable and non-durable. factory orders are a key indicator to the strength of the industrial and manufacturing sectors of an economy.

Main Indicator: Industrial New Orders m/m

Most Recent Release

September
23rd, 2008
Actual Forecast Previous Revised Form
1.0% -0.7% -0.5% -0.3%

For July - (s.a.)
Provided by: EuroStat
Current Release: PDF

Orders y/y: 1.6%, forecast -3.9%, pr. -7.4% (Jun), -4.4% (May), 12.3 (Apr),
-3.7% (Mar)

The Euro-zone industrial new orders rebounded by 1% in July compared with the previous month, where orders were down 0.5%. On the year orders were up 1.6%. Both figures were above expectations surprised forecasts that called for another month of declines. However, excluding ships, railway and aerospace equipments, orders fell 1.4%. That put orders for transportation at a very high growth level of 10%. The index in Germany fell for the eight consecutive month. 

This data stands in contract to the weaker Manufacturing PMI data that came out for September, as this indicator works with a longer time lag. Still as the first month in the 3rd quarter this data will help favor GDP growth, though if the positive result is reversed in coming months is yet to be seen.  

Table of Past Data

12/211/232/223/264/235/226/257/238/229/23
Actual2.5%2.7%-3.6%2.0%0.6%-1.0%2.5%-3.5%-0.3%1.0%
Forecast2.0%1.2%-1.1%0.4%-0.4%-0.4%-0.5%-1.3%-1.1%-0.7%
Previous-1.0%2.5%2.0%-3.6%2.2%0.2%-1.2%2.0%-5.4%-0.5%
Revised From-1.6%N/A2.7%N/A2.0%0.6%-1.0%2.5%-3.5%-0.3%

Past Releases

August
22nd, 2008
Actual Forecast Previous Revised Form
-0.3% -1.1% -5.4% -3.5%

For June - (s.a.)
Provided by: EuroStat
Previous Release: PDF

Industrial New Orders y/y: -7.4%, forecast -6.1%, pr -4.4% (May), 12.3 (Apr), -3.7% (Mar)

The industrial new orders index fell, though less than feared in June. May's figures were revised to -5.4%. New orders for textiles grew 2.2%; electronics and electronic equipment increased 1.4%; chemicle and chemicle products manufacturing rose by 1.0%; Machinery and equipment fell 1.1%; Transport equipment decreased by 3.7%.

The Eurozone economy has seen new orders slide with increasing speed. The annual rate shows that businesses have been weakening their outlook for demand and thus cutting investments in such thins as machinery and equipment which fell 2.8%. Textile for example shrank 9.6% and transport equipments fell by 29.8%. 

General business investment has deteriorated, and will pull down GDP. UK investments declined and had this effect on the GDP, and the eurozone situation is very similar.

July
23rd, 2008
Actual Forecast Previous Revised Form
-3.5% -1.3% 2.0% 2.5%

For May - (s.a.)
Provided by: EuroStat
Official Release: PDF

Industrial New Orders y/y: -4.4%, forecast 3.2%, pr 12.3% (Apr), -3.7% (Mar)

Euro-zone industrial orders disappointed forecasts for the May period, falling 3.5%. The consensus forecast was for a drop of 1.3%. The figure reverses all of April's 2% gain. European exports are facing weaker demand from the US and the UK, and European companies face higher operating costs and consumers faced with rising inflation. GDP growth is expected to be weaker in 2nd quarter as manufacturing activity contracts in the face of higher costs, mainly oil and energy, and weakening foreign demand.

From the Release: "In May 2008 compared with April 2008, new orders for chemicals & chemical products fell by 0.5% in both the euro area and the EU27. Manufacturing of basic metals & fabricated metal products decreased by 2.4% and 1.9% respectively. Electrical & electronic equipment dropped by 3.0% in the euro area and by 4.5% in the EU27. Manufacturing of machinery & equipment declined by 4.1% and 7.7% respectively. Textiles & textile products fell by 4.2% in the euro area and by 1.7% in the EU27. Transport equipment decreased by 7.0% and 8.5% respectively."

EUR/USD - Greenback Gains for Second Day: The Euro was lower against the Dollar overnight, falling to test the area near 1.5720 following the release. After the NY open the the Euro fell further to breach 1.57. European stocks gained overnight and the EUR/JPY pair tested 169.70 overnight, but gave up its gains in NY morning trading.

EUR/USD

June
25th, 2008
Actual Forecast Previous Revised Form
2.5% -0.5% -1.2% -1.0%

For April - (s.a.)
Provided by: EuroStat
Official Release: PDF

Industrial New Orders y/y: 11.7%, forecast 2.7%, pr -3.7%

Industrial new orders rose 2.5% on the month, and 11.7% on the year in April. Both results surpsrised forecasts on teh upside and boosted the Euro against the Dollar. Main contributors were the textile products (5.6%) and basic metals and fabricated metals prodcuts (3.2%). Machinery and equipment also rose by 2.6%, while electrical and electronic equipment grew 2.2%. Transport equipments edged up 0.3% and chemicle and chemicle products decreased 0.2%.


May
22nd, 2008
Actual Forecast Previous Revised Form
-1.0% -0.4% 0.2% 0.6%

For March - (s.a.)
Provided by: EuroStat
Official Release: PDF

New Orders y/y: -2.5%, forecast 4.8%, pr. 9.9% (Feb), 7.3% (Jan)

Euro-zone industrial new orders slid in March, with the monthly growth rate showing a 1% fall. Its the first fall after 3 months of gains. The fall was more than double what economists had predicted. The annual rate fell to -2.5%. Orders are being squeezed by a high Euro, higher oil prices and a slowing US economy. Evidence is mounting that the 2nd quarter will be much weaker than the 1st, which surprised forecasts with GDP growth of 0.7%. Germany seems to be holding up while other economies in the Euro-zone like Spain and Italy are struggling. Weaker demand from the US, a key market for exports, will only add pressure as a slowdown in domestic spending also curtais orders for industrial orders.

The Euro, which has been surging the last 2 sessions against the Dollar, reached a high at 1.5813 prior to the release and fell afterward.

April
23rd, 2008
Actual Forecast Previous Revised Form
0.6% -0.4% 2.2% 2.0%

For February - (s.a.)
Provided by: EuroStat
Official Release" PDF 

New Orders y/y: 9.9%, forecast 5.7%, pr. 7.3% (Jan), 2.1% (Dec)

Industrial new orders recorded a positive 0.6% change in February on the month, and a 9.9% increase compared to February of last year. Both numbers beat expectations, but the better news came as the Euro was paring its gains from yesterday's session and it didn't have much impact. Also, the figures are somewhat dated as it takes into account February's data.

In annual terms, new orders for transport equipment increased 16.6%, while manufacturing of electrical and electronic equipment grew by 10.6%.

 

March
26th, 2008
Actual Forecast Previous Revised Form
2.0% 0.4% -3.6% N/A

For January - (s.a.)
Provided by: EuroStat
Official Release: PDF

New Orders y/y: 7.3%, forecast 3.3%, pr. 2.1% (Dec), 11.9% (Nov)

Though October (2.5%) and November (2.7) showed positive growth in industrial new orders, in December orders slipped by 3.6%. Forecasts for January's seasonally adjusted monthly rate are for a small positive change. The annual rate of orders slid from 11.9% in November to 2.1% in December.

January's numbers proved better than anticipated, with a 2.0% increase on the month, and a 7.3% increase on the year. Both numbers beat expectations, and the figure came after an earlier release had already boosted the Euro against the Dollar.

February
22nd, 2008
Actual Forecast Previous Revised Form
-3.6% -1.1% 2.0% 2.7%

For December - (s.a.)
Provided by: EuroStat
Official Release: PDF

New Orders y/y: 2.1%, forecast 8.3%, pr. 11.9%

"In December 2007 compared with November 2007, the euro area1 (EA13) industrial new orders index2 fell by 3.6%. In November3 the index grew by 2.0%. Excluding ships, railway & aerospace equipment4 industrial new orders lost 0.8% in the euro area and 0.5% in the EU27.

In December 2007 compared with December 2006, industrial new orders increased by 2.1% in the euro area. Total industry excluding ships, railway & aerospace equipment grew by 3.3% in the euro area.

Compared with 2006, the average new orders index for 2007 increased by 8.2% in the euro zone and by 10.1% in
the EU27."

January
23rd, 2008
Actual Forecast Previous Revised Form
2.7% 1.2% 2.5% N/A
For November - Seasonally Adjusted
News Release from EuroStat (.pdf)

New Orders y/y: 11.9%, forecast 9.0%, pr. 10.9%.

New orders for industrial goods in November beat forecasts of a fall and gained compared to October. For the month orders increased 2.7%, and they were up 1.9% compared to Nov '06.

For the month, positive contributors were new orders for transport equipment (+7.3%), metals (+5.8%) and metal products (+3.0%), and chemicals and chemical products (+2.7%).
December
21st, 2007
Actual Forecast Previous Revised Form
2.5% 2.0% -1.0% -1.6%
Seasonally Adjusted for October.

Industrial New Orders y/y: 10.9%, forecast 6.5%, pr. 2.4%

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