
Please try another search
Previous: -2.5%
Forecast: 0.6%
Definition
Factory Order index measures the quantity of the raw materials that are required and recommended by factories during produce goods and products operation. Usually calculated by using two indexes, the durable goods and non durable goods, and issued monthly by US Ministry of Trade.
This indicator reflect the percentage change quantity of consumers demand of durable and non durable goods that produced by different factories.
General Effect
In the case the factory orders index shows an increase in factory orders quantity that means increasing raw materials quantity that are needed by factories to complete and activate production operations in target to increase the produced quantity of durable and non durable goods. Accordingly factories will be able to accommodate increasing consumers' demand for goods and products which is moved by changes on their economic conditions such as income level, consumption and expenditures, then as a result factories production capacity will enhance and affect the entire economic circle positively leading to accelerated growth and strengthening the local currency.
Factory orders has an effect on the currencies market significantly because it does reflect the production capacity for the entire economy, so the importance level for this indicator is considered moderate.
In respect of factory orders effect on the stock market in most cases it doesn't leave any obvious effect at stock indices, so if the factory orders percentage change rise it will leave a positive impact on industrial companies shares which affect the whole stock market positively, but it will be balanced with increasing consumers demand on different goods and products as an out come of changes in consumers directions to spend more money and increasing consumption levels instead of investing that amount of money in the stock market.
Previous session overviewOn Monday, the dollar posted steep gains against the euro, the yen and the Swiss franc amid optimism that a broad-based U.S. economic stimulus plan will...
OverviewThe Forex market has begun to return to some form of normality following the holidays. The EUR copped it overnight as speculation swept the market about the ECB...
The Australian dollar could face increased selling pressures over the next 24 hours of trading as economists forecast private-sector spending to weaken further in November. The...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.