US Factory Orders Rise 0.9% in July to $663.6 Billion

New orders for U.S. manufactured goods rose 0.9% in July to $663.6 billion, reversing two consecutive monthly declines. The United States Census Bureau reported that the growth exceeded economist forecasts of a 0.6% rebound, with total factory orders increasing 6.5% compared to July 2025.

Growth was primarily driven by transportation equipment, which advanced 2.3%. Nondefense aircraft and parts saw a significant surge of 12.7%, reaching $19.8 billion. While machinery orders rose 0.8%, orders for computers and electronic products fell 1.1%.

Supporting this trend, the Institute for Supply Management reported a manufacturing PMI of 55.6 in July, marking the highest reading since May 2022. Despite these gains, manufacturers continue to face elevated input costs resulting from import tariffs and energy inflation linked to conflicts in the Middle East. The manufacturing sector currently represents 9.4% of total U.S. economic output.