US factory orders register steepest monthly drop in five years

New orders for manufactured goods in the Unites States fell by their most in five year in June, according to data out on Monday from the Census Bureau.

04 August 2025 16:36:10

Source: Sharecast

Factory orders slumped 4.8% over the month, falling $30.9bn to $611.7bn. That was more or less in line with economists' predictions but the worst monthly decline since April 2020.

The drop follows a revised 8.3% jump in orders in May – the steepest increase since 2014 – as purchasing managers stepped up spending followed a tariff-fuelled drop in April.

According to the Census Bureau, transportation equipment orders fell 22.4% over the month, partially pulling back after a 48.5% increase the previous month, with orders of civilian aircraft, ships and boats dropping sharply after the recent surge.

New orders for manufactured durable goods were down 9.4%, after growing 16.5% in May, while orders for manufactured non-durable goods rose 0.5%.

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