Factory Orders

Factory Orders are an economic indicator which reports the level of new factory orders for both durable and non-durable goods. Its importance as an economic indicator is significant as it provides important information about the industrial sector and its production, with higher than expected or rising figures reflecting a robust industrial sector being positive for the economy and the local currency. Increasing factory orders are correlated with increased consumer confidence and spending, both of which lead to higher economic growth measured by the level of GDP.
Increasing factory orders indicate also inflationary pressures, and declining figures of factory orders may be an early indicator about the contraction of the economy or the slowdown in economic growth. Spain’s manufacturing activity reached an 11-year high in December 2017, and business conditions strengthened in each of the past 49 months. Factory orders in Spain averaged -14.97 from 1993 until 2017, reaching an all-time high of 15 in July of 1998 and a record low of -61 in February of 1993.
The IHS Markit Spain Manufacturing PMI fell to 55.8 in December 2017 from a near 11-year high of 56.1 in November and below market expectations of 56.4. Industrial new orders received in Spain rose 4.3 percent year-on-year in October of 2017, following a downwardly revised 14.6 percent jump in September. It was the smallest increase in industrial new orders since December last year. On a monthly basis, industrial new orders decreased 4.1 percent compared to a 4.9 percent rise in September.
Factory Orders in Spain averaged 1.61 percent from 2003 until 2017, reaching an all-time high of 14.90 percent in September of 2017 and a record low of -33.50 percent in March of 2009.