Factory orders indicator shows the value of new purchased orders placed with manufacturers and it is looking for the change of it on a monthly basis. A better then expected released should be viewed as positive for the currency as it implies managers will increase activity to fill orders and therefore should be positive for the overall economy if constantly on the rise or at least showing positive increases from month to month.
Looking at the past six month data from February this year until July, there can be seen a jump in the last two months with positive printings for June and July, even values bigger than 2% for July. This pick up in factory orders should be interpreted as positive for the currency and the economy as a whole.
The most important things to keep in mind regarding factory orders indicator:
- shows the change in total value of new purchased orders placed with manufacturers;
- released on a monthly basis, 35 days after month ends;
- it is a percentage based indicator;
- release time: 14:00 GMT, during North American trading session;