Business

US Factory Orders Decline in July, Exceeding Expectations

US Factory Orders Decline in July, Exceeding Expectations
Editorial
  • PublishedSeptember 3, 2025

July 2023 saw a notable decrease in factory orders across the United States, with a drop of 1.3%, slightly better than the anticipated 1.4% decline. This decrease comes after a significant reduction of 4.8% in the previous month, raising concerns about the ongoing recovery in the manufacturing sector.

A closer look at the reports reveals mixed signals within the data. Orders excluding transportation increased by 0.6%, outperforming the previous figure of 0.4%. This suggests that while overall factory orders are down, some segments within the industry are experiencing growth.

Durable goods orders also reflected a consistent trend, falling by 2.8%, aligning with preliminary estimates. Specifically, durable goods orders excluding defense decreased by 2.5%, which matches earlier projections as well. This indicates that while certain sectors are struggling, the defense industry remains stable.

One bright spot in the report was the performance of non-defense capital goods orders, which increased by 1.1%. This figure aligns with initial estimates and highlights the resilience of investment in the manufacturing sector, suggesting that businesses are still willing to invest in new equipment and technology despite the broader downturn in orders.

The data, compiled by the U.S. Census Bureau, reflects ongoing challenges in the manufacturing landscape, including supply chain disruptions and fluctuating demand. Analysts are watching these trends closely, noting that while the report shows signs of weakness, the positive performance in specific areas could indicate potential for recovery.

According to Adam Button from InvestingLive.com, this report is viewed as solid, providing a more nuanced perspective on the manufacturing sector’s health. The mixed results underscore the complexity of current economic conditions, where certain segments thrive even as others face significant challenges.

As the economy continues to navigate these turbulent waters, the implications of this report will likely influence policy decisions and business strategies moving forward. Investors and policymakers alike will be eager to see how these trends evolve in the coming months.

Editorial
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