Economic Reports 03/28/07
Durable Orders Feb +2.5% vs prior revised down from -7.8% to -9.3% Full Report
Inside the number: on a +88.4% increase in non defense aircraft orders. Ex transportation Durable Orders a feeble +0.1%.
Orders for core capital equipment falling -1.2%, shipments of semi conductors falling -23.6% vs prior +65.5%, classic channel stuffing to cook the books.
Shipments of durable goods -0.8%, inventory +0.2% with inventory to shipment ratio growing to 1.44, the highest since 2003.
New orders are at a trickle, back orders are getting filled. A reluctance to expand production could lead to a downtrend in capital equipment orders.
This would put growth at risk while increasing the potential for inflation vis a vis a production squeeze.
Inside the number: on a +88.4% increase in non defense aircraft orders. Ex transportation Durable Orders a feeble +0.1%.
Orders for core capital equipment falling -1.2%, shipments of semi conductors falling -23.6% vs prior +65.5%, classic channel stuffing to cook the books.
Shipments of durable goods -0.8%, inventory +0.2% with inventory to shipment ratio growing to 1.44, the highest since 2003.
New orders are at a trickle, back orders are getting filled. A reluctance to expand production could lead to a downtrend in capital equipment orders.
This would put growth at risk while increasing the potential for inflation vis a vis a production squeeze.
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