Key facts
- US factory orders rose 0.1% in August.
- Factory orders increased 6.8% year-over-year in August.
- Commercial aircraft orders fell 4.3% in August.
- Orders for non-defense capital goods excluding aircraft rose 1.6% in August.
New orders for U.S. factory goods saw a marginal increase of 0.1% in August, a slight deceleration from the revised 0.8% jump recorded in July, according to data from the Commerce Department's Census Bureau. This modest gain was primarily supported by robust demand for electrical equipment, appliances, components, and machinery, which rose 1.1% and 1.1% respectively. However, the overall figure was constrained by a significant 4.3% decline in orders for civilian aircraft and parts.
Orders for computers and electronic products remained unchanged in August, though they were up 14.7% year-over-year. Motor vehicle bodies, parts, and trailers saw a 0.8% increase. Orders for non-defense capital goods excluding aircraft, a key indicator of business spending plans, accelerated by 1.6% in August, with shipments of these goods rising 0.5% from the initially estimated 0.6% increase.
Economists had anticipated a 0.1% rise in factory orders for August. On a year-over-year basis, factory orders increased by 6.8%. The report noted that AI infrastructure buildouts are supporting manufacturing and inventory rebuilding to meet domestic demand. However, concerns persist about sectors not benefiting from the AI boom facing headwinds from the conflict between the US and Iran, which has disrupted supply chains and increased energy prices, with diesel prices at record highs. Ongoing tariffs on imports, particularly the trade war with Canada, were also cited as downside risks.