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Factory Orders – What are Factory Orders in economy?

May 23, 2019 by Investor

What are Factory Orders?

Definition of Factory Orders: These factory orders are regarded as one of the several economic indicators that try to calculate the alterations in the production capability of the economy. This reports several orders for durable as well as nondurable items. The Census of the Department of Commerce of U.S releases this report every month in two weeks followed by the report of the durable goods. This report consists of four sections named as new orders which show that whether the company is growing or retreating. The second is known as the unfilled orders in which it indicates whether a backlog or pipeline is forming. The third in the list shipments which is regarded as an indicator of the existing sales volume and the last is the inventories showing whether the existing or future productions are strong or weak. The Forex traders and investors are aware of this indicator as it has the power to influence the direction of the market and offers insight to the growing trends in the future. The orders of the nondurable goods consist of clothes, food, light products used in the industries and items made for maintaining durable products.

Related posts:

  1. Ivey Purchasing Managers Index
  2. Trade Balance
  3. Factory Orders
  4. Consumer Confidence Index
  5. Economic Indicators
  6. Existing Home Sales
  7. Durable Goods Orders
  8. Forex Trailing Stop Orders

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