2025.09.0314:08:33UTC+00US Factory Orders Fall for 2nd Month

In July 2025, new orders for U.S. manufactured goods decreased by 1.3% compared to the previous month, totaling $603.6 billion. This decline follows a significant 4.8% drop in the prior month, maintaining a five-year high for such decreases and closely matching market predictions of a 1.4% downturn. The primary factor for this reduction was a considerable decline in the orders for transportation equipment, which fell by 9.5% to $102.0 billion. This was largely due to a steep 32.7% decrease in nondefense aircraft and parts orders, down to $19.1 billion. These reductions can be attributed to foreign airlines and companies likely curtailing their aircraft orders after an April surge, which was an attempt to expedite purchases before U.S. tariffs took effect. Conversely, there were increases in orders for machinery, which rose by 1.9% to $38.9 billion, primary metals, up by 1.6% to $27.0 billion, and computers and electronic products, experiencing a 0.5% increase to reach $26.8 billion.