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 >
A humbled Modi needs allies, and answers to India's unemployment, inflation
A humbled Modi needs allies, and answers to India's unemployment, inflation
Jun 5, 2024
NEW DELHI (Reuters) -Indian Prime Minister Narendra Modi is set to win a rare third term in office, but a smaller-than-expected mandate means he will have to lean more on his allies for support, and that means urgently addressing issues like unemployment, inflation and economic disparities in the world's most populous nation. Unlike the last two elections, Modi's Hindu nationalist...
US private payrolls rise less than expected in May - ADP
US private payrolls rise less than expected in May - ADP
Jun 5, 2024
(Reuters) - U.S. private payrolls increased less than expected in May while data for the prior month was revised lower, a report showed on Wednesday. Private payrolls increased by 152,000 jobs last month after rising by a downwardly revised 188,000 in April, the ADP Employment report showed. Economists polled by Reuters had forecast private employment increasing by 175,000 last month....
US Dollar Rises Early Wednesday Ahead of ADP Private Payrolls, May Services Data
US Dollar Rises Early Wednesday Ahead of ADP Private Payrolls, May Services Data
Jun 5, 2024
07:30 AM EDT, 06/05/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Wednesday ahead of the release of ADP private payrolls data for May at 8:15 am ET. May services data from S&P Global is due to be released at 9:45 am ET, followed by the ISM services reading at 10:00 am ET and weekly...
US Dollar Falls After ADP Employment Report Surprises on Soft Side
US Dollar Falls After ADP Employment Report Surprises on Soft Side
Jun 5, 2024
08:35 AM EDT, 06/05/2024 (MT Newswires) -- The US dollar fell against all major currencies during early North American trade on Wednesday after the Automatic Data Processing employment report surprised on the soft side of expectations for May. EUR/USD pared losses and GBP/USD added to earlier gains when rallying to session highs around 1.0872 and 1.2790 respectively, while USD/JPY and...
Copyright 2023-2025 - www.financetom.com All Rights Reserved