US Factory Orders Fall Less than Expected

Factory orders in the US fell 1.3% month-over-month in May 2026, following an upwardly revised 5.3% surge in April and compared with market expectations for a 1.8% decline. The decrease was driven by a 4.5% drop in durable goods orders, led by a 14% slump in transportation equipment, largely reflecting a 51.8% plunge in orders for nondefense aircraft and parts. Orders for electrical equipment, appliances, and components also slipped 0.3%. Excluding transportation, factory orders rose 1.9%, extending April's 1.7% increase. Gains were recorded in fabricated metal products (1.4%), machinery (2.1%), and computers and electronic products (0.2%). Meanwhile, orders for nondurable goods increased 2.2%.

US factory order surged 4.8% from the previous month to $662.7 billion in April of 2026, ahead of market expectations of 4.6% and extending the upwardly revised 1.8% increase in March, the most in 11 months. Durable goods orders jumped by 8% to $346.2 billion, aliging with results from comparable surveys as clients had front-loaded orders before the war in the Middle East could incrase prices further. Orders were higher for transportation (21.6% to $131.1 billion) due to a surge in nondefense aircraft orders (165.9% to $36.79 billion). Orders also rose for fabricated metal products (3.5% to $44.5 billion) and primary metals (2% to $29.5 billion). In turn, orders fell for computers and electronics (-0.7% to $29.7 billion). Nondurable goods orders rose by 1.4% to $316.5 billion.

US factory orders rose 1.5% month-over-month to $630.4 billion in March 2026, beating market expectations of 0.5% and following an upwardly revised 0.3% increase in February. New orders for manufactured durable goods increased 0.8% to $318.9 billion, ending three straight months of declines. Computers and electronic products surged 3.6%, the most since March 2001, with electromedical, measuring, and control instruments up 7.9% to a record high amid an AI investment boom and data center construction. Transport equipment orders also rose 0.8%, led by vehicles (0.9%), defense aircraft and parts (17.8%), and ships and boats (30.9%). Gains were also seen in machinery (0.9%), electrical equipment, appliances, and components (0.8%), and primary metals (0.5%). Nondurable goods orders rose 2.1% to $311.5 billion, the highest level since October 2022. Excluding transportation, factory orders grew 1.6% in March, while excluding defense, orders rose 0.9%.