US Factory Orders Surge by 8.2% in May

United states news

  July 6th, 2025|Written by
IndexBox

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In a remarkable development, new orders for U.S.-manufactured goods surged in May, driven by strong demand for aircraft and robust business spending on equipment. According to a report by Reuters, factory orders increased by 8.2% following a downwardly revised 3.9% drop in April. This rebound aligns with economists’ forecasts, marking a 3.2% year-on-year increase in May.

Despite these gains, the manufacturing sector, which constitutes 10.2% of the U.S. economy, continues to face challenges due to the tariffs on imported goods imposed by President Donald Trump. An Institute for Supply Management survey indicated ongoing concerns among manufacturers, who described the business climate as “hellacious” and “too volatile” for long-term procurement planning.

The surge in factory orders was notably bolstered by a 230.8% leap in commercial aircraft orders, largely attributed to Qatar Airways’ significant order of at least 150 aircraft from Boeing during Trump’s visit to the Gulf Arab country in May. Additionally, orders for motor vehicles, parts, and trailers rose by 0.8%, while computers and electronic products saw a 1.5% increase. Orders for electrical equipment, appliances, and components grew by 0.7%, and machinery orders climbed 0.4%.

Furthermore, the government reported that orders for non-defense capital goods excluding aircraft, a key indicator of business spending plans on equipment, rebounded by 1.7% in May. Shipments of these core capital goods rose by 0.4%, although this figure was revised down from the previously reported 0.5%. Non-defense capital goods orders experienced a significant jump of 49.5%, slightly above the earlier reported 49.4% increase, while shipments of these goods dipped by 0.1% rather than remaining unchanged as initially reported.

Source: IndexBox Market Intelligence Platform