U.S. factory orders increase less than forecast in January

The U.S. Commerce Department reported on Tuesday that the value of new factory orders edged up 0.1 percent m-o-m in January, following an unrevised 0.1 percent m-o-m gain in December.

Economists had forecast a 0.3 percent m-o-m advance.

According to the report, orders for machinery rose 1.5 percent m-o-m in January after decreasing 0.4 percent m-o-m in December, while orders for electrical equipment, appliances and components climbed 1.4 percent m-o-m after dropping 0.3 percent m-o-m in December and transportation equipment orders jumped 1.2 percent m-o-m after a 3.2 percent m-o-m rise in December. At the same time, computers and electronic products orders fell 0.9 percent m-o-m in January after declining 0.4 percent in December, orders for mining, oil field and gas field machinery dropped 2.7 percent m-o-m after tumbling 8.2 percent m-o-m in December and orders for primary metals decreased 2.0 percent m-o-m and fabricated metal products orders fell 0.6 percent m-o-m.

Total factory orders excluding transportation, a volatile part of the overall reading, fell 0.2 percent m-o-m in January (compared to a 0.6 percent m-o-m drop in December), while orders for nondefense capital goods excluding aircraft, a measure of business spending plans, increased 0.8 percent m-o-m compared to a 0.8 percent m-o-m decline in December. The report also showed that shipments of core capital goods also rose 0.8 percent m-o-m in January, following a drop of 0.1 percent m-o-m in December.

In y-o-y terms, factory orders increased 3.8 percent in January.