US: Order activity ramped back up in February - Wells Fargo

In February, Factory Orders rose 1.2% following a 1.3% decline in January. Analysts at Wells Fargo, pointed out that core capital goods orders rose a stronger 1.4% in February, with many major categories seeing orders rise over the month.

Key Quotes: 

“February’s 1.2 percent rebound in the headline and 1.4 percent rise in core capital orders is welcome news following January’s decline in both.” 

“Shipments of core capital goods rose 1.4 percent in February after remaining flat in January, which bodes well for equipment spending in Q1 GDP. We still anticipate it to be less of a boost to Q1 GDP than the double digit gains in the second half of 2017.”

“February’s increase in order activity was limited to durable goods manufacturers, as nondurable goods orders declined 0.5 percent after rising 1 percent in January.”

“Orders growth by industry was broad based in February, led by transportation. Solid gains in electrical equipment, machinery and primary metals offset a slip in computer related electronics.”