According to the US Census Bureau, the dollar volume of factory orders during February fell by 1.7% on a month-over-month basis. The consensus estimate among analyst according to Thomson Reuters was for a decrease of 1.6%. In January, the orders volume rose by 1.6%.
Orders for items which are expected to last more than three years declined by 2.8% in February, as per Durable Goods Orders. This is in line with the 2.8% drop experienced in January and consensus analyst estimate.
Markets are showing little reaction to the data release The ICE US dollar index (DXY) is trading lower for the day by 0.17% to 94.47, while equities are flat in early trade. The benchmark S&P 500 index is currently higher by 1 point, or 0.4% to 2,074.
Looking at the state of the manufacturing sector per March ISM data: On Friday, we saw the ISM Manufacturing PMI rise back into expansion territory to 51.8 for March, the first sign of growth in several months. The Prices Paid index jumped from 38.5 to 51.5, showing a much stronger anticipation for higher inflation moving forward.