financetom
Economy
financetom
/
Economy
/
US factory orders rise solidly in February
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US factory orders rise solidly in February
Apr 2, 2025 7:50 AM

WASHINGTON (Reuters) - New orders for U.S.-manufactured goods increased solidly in February, likely as businesses front-loaded orders ahead of tariffs.

Factory orders rose 0.6% after an upwardly revised 1.8% rebound in January, the Commerce Department's Census Bureau said on Wednesday. Economists polled by Reuters had forecast factory orders would climb 0.5% after a previously reported 1.7% advance in January. Factory orders gained 1.5% on a year-on-year basis in February.

Manufacturing, which accounts for 10.2% of the economy, could be crippled by President Donald Trump's barrage of tariffs since returning to the White House in January.

Trump promised to announce global reciprocal tariffs on Wednesday, which he has dubbed "Liberation Day." He sees tariffs as a tool to raise revenue to offset his promised tax cuts and to revive a long-declining U.S. industrial base. Economists disagree and view the import duties as harmful. 

An Institute for Supply Management report on Tuesday showed its manufacturing PMI slipped back into contraction territory in March after two straight months of expansion, with businesses overwhelmingly expressing concerns about tariffs. 

Domestic manufacturers rely heavily on imported raw materials. The import taxes are expected to increase production costs, which are passed on to buyers of the finished products. Companies could also lay off workers to protect profit margins. 

Commercial aircraft orders slipped 5.0%. Orders for motor vehicles, parts and trailers increased 1.9%. Transportation equipment orders advanced 1.5%. Orders for computers and electronic products were unchanged, while those for electrical equipment, appliances and components rebounded 1.9%. 

Machinery orders increased 0.6%. Excluding transportation equipment, factory orders rose 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, fell 0.2% in February rather than 0.3%, as estimated last month. 

Shipments of core capital goods jumped 0.8%, revised down from the previously reported 0.9%. Business spending on equipment is expected to rebound in the first quarter after contracting in the fourth quarter.

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 >
Federal Reserve's Preferred Inflation Gauge Falls To 2025 Low, But Jerome Powell Maintains 'Wait-And-See' Stance Amid Tariff Uncertainty
Federal Reserve's Preferred Inflation Gauge Falls To 2025 Low, But Jerome Powell Maintains 'Wait-And-See' Stance Amid Tariff Uncertainty
Jun 2, 2025
April’s Personal Consumption Expenditures data presented a complex picture for Jerome Powell, with economists suggesting the persistent cloud of tariff uncertainty compels the central bank to “wait and see” policy stance even as “disinflation” has set in. What Happened: The April PCE report, the Federal Reserve’s preferred inflation gauge, revealed a deceleration in headline inflation to 2.1% annually, marking the...
Trump Rails Against Court Rulings Blocking His Tariffs, Says US Could Be 'Held Hostage' By Foreign Nations
Trump Rails Against Court Rulings Blocking His Tariffs, Says US Could Be 'Held Hostage' By Foreign Nations
Jun 2, 2025
President Donald Trump claimed losing legal challenges to his sweeping tariffs would lead to the “economic ruination” of America after federal courts blocked his emergency trade powers while an appeals court provided temporary relief. What Happened: Trump warned on Truth Social Sunday that adverse court rulings “would allow other Countries to hold our Nation hostage with their anti-American Tariffs,” following...
US Dollar Falls Early Monday Ahead of Manufacturing Data, Powell, Focus This Week on May Employment
US Dollar Falls Early Monday Ahead of Manufacturing Data, Powell, Focus This Week on May Employment
Jun 2, 2025
07:50 AM EDT, 06/02/2025 (MT Newswires) -- The US dollar fell against its major trading partners early Monday ahead of the release of manufacturing data for May from S&P Global at 9:45 am ET and from ISM at 10:00 am ET. Construction spending data for April is also scheduled for 10:00 am. The Atlanta Federal Reserve Bank is expected to...
JPMorgan CEO Jamie Dimon tells Fox Business US debt could cause bond turmoil
JPMorgan CEO Jamie Dimon tells Fox Business US debt could cause bond turmoil
Jun 2, 2025
NEW YORK (Reuters) -JPMorgan Chase ( JPM ) CEO Jamie Dimon said on Monday that the rising U.S. national debt is a big deal that could create a tough time for the bond market that causes spreads to widen, he told Fox Business' Mornings with Maria program. The comments echo his earlier warnings about potential market turmoil, citing rising U.S....
Copyright 2023-2026 - www.financetom.com All Rights Reserved