financetom
Economy
financetom
/
Economy
/
US factory orders rebound in May on strong aircraft demand
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US factory orders rebound in May on strong aircraft demand
Jul 3, 2025 8:17 AM

WASHINGTON (Reuters) -New orders for U.S.-manufactured goods surged in May on strong demand for aircraft and business spending on equipment appeared to be strong halfway through the second quarter.

Factory orders increased 8.2% after a downwardly revised 3.9% drop in April, the Commerce Department's Census Bureau said on Thursday. Economists polled by Reuters had forecast factory orders rebounding 8.2% after a previously reported 3.7% decline in April. They increased 3.2% on a year-on-year basis in May.

Manufacturing, which accounts for 10.2% of the economy, remains constrained by President Donald Trump's aggressive tariffs on imported goods. An Institute for Supply Management survey on Tuesday showed anxiety over trade policy among manufacturers in June, with manufacturers variously describing the business environment as "hellacious" and "too volatile" for long-term procurement decisions. 

Trump sees the tariffs as a tool to raise revenue to offset his promised tax cuts and to revive a long-declining industrial base, a feat that economists argued was impossible in the short term because of labor shortages and other structural issues.

Commercial aircraft orders soared 230.8%. That reflected at least 150 aircraft from Qatar Airways placed with Boeing during Trump's visit to the Gulf Arab country in May.

Orders for motor vehicles, parts and trailers rose 0.8%. Orders for computers and electronic products increased 1.5%, while those for electrical equipment, appliances and components rose 0.7%. Machinery orders gained 0.4%. 

The government also reported that orders for non-defense capital goods excluding aircraft, which are seen as a measure of business spending plans on equipment, rebounded 1.7% in May as estimated last month.  

Shipments of these so-called core capital goods rose 0.4%, revised down from the 0.5% reported last month. Non-defense capital goods orders jumped 49.5%. They were previously reported to have accelerated 49.4%. Shipments of these goods dipped 0.1% instead of being unchanged as previously reported. 

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Dallas Fed October Manufacturing Index Indicates Slower Contraction
Dallas Fed October Manufacturing Index Indicates Slower Contraction
Nov 3, 2024
10:40 AM EDT, 10/28/2024 (MT Newswires) -- The Dallas Fed's monthly manufacturing index rose to a reading of minus 3.0 in October from minus 9.0 in September, compared with expectations for a decrease to a reading of minus 9.2. The index still indicates contraction, which is in line with the Empire State, Richmond Fed, Kansas City and the S&P Global...
US Dollar Falls Early Monday, Advance Q3 GDP, October Employment Highlight Busy Data Week
US Dollar Falls Early Monday, Advance Q3 GDP, October Employment Highlight Busy Data Week
Nov 3, 2024
07:55 AM EDT, 10/28/2024 (MT Newswires) -- The US dollar fell against its major trading partners early Monday, except for a gain versus the yen, as markets prepare for an extremely busy data schedule that includes the first look at Q3 gross domestic product growth and the October employment report, while Federal Reserve officials are in their 'quiet period' ahead...
EUR/USD Weakens Amid Global Economic Uncertainty And Strong US Dollar
EUR/USD Weakens Amid Global Economic Uncertainty And Strong US Dollar
Nov 3, 2024
By RoboForex Analytical Department The EUR/USD pair began the week around 1.0789, reflecting heightened global economic uncertainties and a strong inclination towards safe-haven assets. The appeal of the US dollar is bolstered by rising US government bond yields and positive consumer confidence indicators from the University of Michigan, which reported a rise to 70.5 points in October, surpassing expectations. The...
Treasury likely to keep debt plans in place before US elections
Treasury likely to keep debt plans in place before US elections
Nov 3, 2024
NEW YORK (Reuters) - The Treasury Department may offer fresh guidance on expected increases in its 2025 debt auctions when it announces its updated refunding plans this week, though uncertainty over the Nov. 5 U.S. elections likely means any details will be minimal. The U.S. government will issue overall borrowing estimates for the coming two quarters on Monday and provide...
Copyright 2023-2026 - www.financetom.com All Rights Reserved