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US Factory Orders Jump Nearly 5% on Aircraft Boom
5 Jun
Summary
- New factory orders rose 4.8% in April, the largest increase in nearly a year.
- Commercial aircraft orders surged dramatically by 165.9% in April.
- Business spending on equipment declined 1.0% in April, a slight revision.
New orders for U.S. factory goods posted their most substantial increase in nearly a year during April, surging by 4.8%. This marks the largest rise since May 2025, following a revised 1.8% advance in March. The robust performance was significantly bolstered by a dramatic 165.9% surge in commercial aircraft orders.
Orders for primary metals and fabricated metal products also saw increases, alongside machinery and electrical equipment. However, orders for computers and electronic products experienced a 0.7% drop. Orders for non-defense capital goods excluding aircraft, a key indicator of business spending plans, declined by 1.0% in April, though shipments of these goods rose.
Manufacturing, which represents 9.4% of the economy, is currently supported by an artificial intelligence spending boom. Nevertheless, the ongoing conflict between the U.S. and Iran presents a downside risk, with disruptions to shipping and elevated energy prices potentially impacting future demand.
