FACTORY ORDERS

Definition

A good forex broker or trader will look at the Factory Orders Report for information on both durable and non-durable goods orders—info that can help them make projections about the US dollar.

Non-durable goods include items such as food and tobacco products. This is the first report of the month on which non-durable goods appear, so it is the first time that the figures are available for use by investors involved with FX trading. Investors also use this report to look for revisions to previously released data on durable orders.

Factory Orders Importance

Even though inventory figures themselves don’t generally affect markets, economists do use the numbers in order to forecast inventory calculations for the quarterly GDP report. For individuals involved with forex trading, the factory orders report can provide insight into the strength or weakness and future fate of the economy.

Factory Orders Source

The report is compiled by the US Census Bureau.

Availability

Forex brokers and traders can find the report at http://www.census.gov/manufacturing/m3/.

Frequency as a Forex Trading Indicator

The Census Bureau makes two releases every month. The Advance Report on Durable Goods Orders and Manufacturers’ Shipments comes out at 8:30 AM EST approximately eighteen working days after each month. The Manufacturers’ Shipments, Inventories, and Orders report comes out at 10 AM EST approximately twenty-three working days after each month.