U.S. factory orders fell in June as aircraft bookings retreated, but core measures strengthened, suggesting underlying demand held up into the summer. New orders declined 4.8 percent to $611.7 billion, a touch better than the minus 5.0 percent drop expected by Econoday.
Outside the volatile transportation category, new orders rose 0.4 percent to $498.6 billion, a commonly watched proxy for factory demand beyond aircraft and autos. Excluding both transportation and defense, orders showed an even firmer 0.8 percent gain, rising to $483.5 billion from $479.6 billion in May.
Transportation was the swing factor. Transportation equipment orders fell 22.4 percent to $113.1 billion, led by nondefense aircraft and parts down 51.8 percent after May’s surge. Defense aircraft rose 5.0 percent. Nondurable-goods orders rose 0.5 percent to $299.9 billion, cushioning the headline drop.
Orders for durable goods, excluding aircraft and defense, rose 0.4 percent.
Orders for industrial machinery rose 6.9 percent to $3.51 billion and primary metals orders climbed 0.6 percent to $26.51 billion. Household appliance orders rose 1.4 percent to $1.3 billion.
Construction machinery orders fell 3.9 percent to $3.9B. Orders for motor vehicles, parts, and trailers declined by 0.7 percent.
June’s decline followed an 8.3 percent jump in May, underscoring the month-to-month noise from aircraft bookings. Through the first half of 2025, new orders are 3.8 percent above a year earlier.
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