The U.S. factory orders experienced a significant increase in May because of increased aircraft demand together with stable equipment investment from businesses which created a positive development for industrial operations.
The Commerce Department reported that manufactured goods orders increased by 8.2% after April’s downwardly revised 3.9% decrease. The major aircraft order between Boeing and Qatar Airways during President Trump’s Gulf visit triggered a 230.8% increase in commercial aircraft orders which became the main driver of the industry recovery.
The industrial sector experienced moderate but positive growth in all sectors except aerospace. The production of motor vehicles increased by 0.8% while computer and electronics orders grew by 1.5%. Machinery and appliances also saw slight gains.
The 1.7% increase in May capital goods orders excluding defense and aircraft matched previous estimates of business investment growth. The core goods shipments showed only a 0.4% increase which indicates that the momentum remains cautious.
The manufacturing sector faces ongoing difficulties because of increasing expenses and unclear policies although it experienced positive results in the current month. Multiple companies mentioned that Trump’s import tariffs continued to act as a major obstacle. The ISM survey results from earlier showed that trade disruptions and planning volatility were major concerns for the industry.
The strong order recovery indicates that business demand remains stable even though manufacturers face both policy uncertainties and workforce shortages.
