US factory orders rose 0.9% in July, beating economists’ expectations for a 0.6% increase, according to data released Wednesday by the Commerce Department’s Census Bureau.
The increase was driven largely by a 12.7% jump in orders for civilian aircraft and parts.
Manufacturing, which accounts for about 9.4% of the US economy, is receiving support from investment linked to artificial intelligence infrastructure.
However, supply-chain disruptions and elevated input costs continue to weigh on manufacturers amid geopolitical tensions and tariffs.
Orders for non-defense capital goods were unchanged, suggesting limited growth in business equipment spending. Shipments of core capital goods rose 1.2%, below the previously estimated 1.4% increase. Manufacturers continue to report concerns over higher prices and trade-related costs.
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— Economic Times (@EconomicTimes) September 2, 2026
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