Home / Business and Economy / US Factory Orders Rebound, But Equipment Spending Slows
US Factory Orders Rebound, But Equipment Spending Slows
18 Nov, 2025
Summary
- New factory orders increased 1.4% in August, rebounding from a prior decline.
- Business spending on equipment saw a slower increase than initially reported.
- Manufacturing continues to face challenges due to ongoing tariff impacts.
U.S. factory orders demonstrated a rebound in August, increasing by 1.4% following a decline in July. This rise met economists' expectations and indicates a positive trend on a yearly basis. The report, initially delayed by a federal government shutdown, provides insight into the manufacturing sector's performance.
The manufacturing industry, a significant component of the U.S. economy, is navigating difficulties stemming from tariffs on imported goods. Data suggests that while overall orders are improving, the pace of business investment in equipment has moderated. Orders for core capital goods, excluding aircraft, saw a smaller uptick than previously estimated.
Further analysis of shipments for these essential capital goods reveals a slight contraction, underscoring the complex challenges within the manufacturing landscape. The extended contraction of the ISM manufacturing index for eight months highlights ongoing headwinds despite the recent increase in factory orders.
