Economic Trends

U.S. Factory Orders Snap Gain Streak with April Slump

U.S. factory orders fell in April, snapping a four-month streak of gains, as transportation equipment and aircraft demand plunged.

June 3, 2025

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U.S. Census Bureau data released June 3 showed a sharp decline in new orders of manufactured goods during April, following four consecutive monthly gains. Orders decreased 3.7% during April, down from the 3.4% gain in March (revised down from 4.3%).

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Economists polled by Reuters expected factory orders to decrease by 3.1%.

U.S. Manufactured Goods: Month-Over-Month % Change


source: tradingeconomics.com

The Bureau’s report showed that April durable goods orders decreased 6.3% during April, led by a decline in transportation equipment of 17.1%. This was further driven by a 51.5% drop in non-defense aircraft and parts, as concerns over tariffs prompted airlines to scale back demand for Boeing aircraft, which received only eight orders.

Orders also declined for primary metals (-0.1%), particularly aluminum and other nonferrous metals (-2.3%), as well as for electrical equipment, appliances and components (-0.3%).

Shipments — up five consecutive months — increased 0.3% in April after a 0.2% gain in March.

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Unfilled orders — up 11 of the last 12 months — remained unchanged in April (+1.6% in March) and the unfilled orders-to-shipments ratio moved down to 6.77 during April (6.86 in March).

Inventories — up seven consecutive months — increased 0.2% during April (0.1% in March) and the inventories-to-shipments ratio moved up to 1.58 (1.57 in March).

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