US factory orders

US factory orders rose in September for the fifth time in six months, boosting hopes that manufacturing will drive the economic recovery.

New orders for manufactured goods in September increased $3.3 billion or 0.9% to $356.1 billion, the US Census Bureau reported today. This followed a 0.8% August decrease. Excluding transportation, new orders
increased 0.8%.

Shipments, up three of the last four months, increased $2.9 billion or 0.8% to $363.1 billion. This followed a 0.2% August decrease.

Unfilled orders, down twelve consecutive months, decreased $3.3 billion or 0.4 percent to $733.3 billion. This was the longest streak of consecutive monthly decreases since the series was first published on the present basis in 1992. It followed a 0.4% August decrease. The unfilled orders-to-shipments ratio was 5.83, down from 5.97 in August.

Inventories, down thirteen consecutive months, decreased $4.8 billion or 1.0 percent to $492.6 billion.

This was the longest streak of consecutive monthly decreases since February 2001-May 2002 and followed a 0.9% August decrease. The inventories-to shipments ratio was 1.36, down from 1.38 in August.

Irish food exporters

“Food exporters need a New Deal,”was the message from the Irish Exporters Association (IEA) at the Agri Food Forum in the RDS, Dublin today, which was organised by the farm lobby group, the IFA.

Speaking at the Agri Food Forum, John Whelan CEO of the IEA, outlined the issues for the food export sector: “The Agri-Food exporters are in the middle of a major market crisis with currency volatility, slowing consumer spending, and reduced access to credit  all impacting.  €600 million was wiped off the value of Food Exports last year, a further €800 million has been lost this year to date.  This is an 18% fall in the value of exports over a two year period, and represents the worst periods of continuous deterioration in market conditions for food exporters for several decades”.

He said: “Sterling depreciation of 20% over the past 18 months, is not a normal trading issue that exporters can be expected to shoulder on their own.  Deterioration in the economies of our target markets has resulted in severe tightening in credit conditions.  Hence, in a recent survey exporters put Finance and cash flow as their principle challenge.’’

He also said urgent action is needed to tackle the immediate crisis in the sector, and we need a new deal to tackle the long term issues to prevent continued decline in the sector.

On the immediate actions, the IEA says teh Government have a key role to play, but must act immediately and decisively to support the sector with:

• Providing an Export Credit scheme supported by the State- something that has been bandied about by the Government for 12 months now, but without a decision.

• Re- opening the Employment Subsidy scheme immediately with new rules offering support to viable but vulnerable exporters above minimum levels.

On the longer Term a new Deal is required, according to the IEA  to dramatically reduce our export dependence on the Sterling area, and drive up our exports in the Eurozone and other international markets.

Ryanair

Ryanair today reported that it carried 6.16 million passengers in October, an increase of 15% on the same month last year.

However, the load factor  -- the percentage of seats filled - - was unchanged at 85%. The load factor 12-month rate was 82%.

Ryanair said on Monday that it expected fares to decline by up to 20% in the second half of the year, resulting in the next six months being loss making.

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