U.S. Core Factory Orders Drop 0.4 Percent in June

U.S. Core Factory Orders fell 0.4 percent month-over-month in June, according to data from the United States Census Bureau. This result marks the first monthly decline since October and the sharpest drop since April 2025, contradicting market forecasts that predicted a 0.4 percent increase.

Headline factory orders also decreased by 0.3 percent, representing the second consecutive monthly decline for the broader category. Despite these dips, year-over-year orders have risen 7.4 percent, and the Manufacturing PMI has reached four-year highs.

The data indicates a bifurcated economy. Strong demand continues to drive the AI supply chain, semiconductors, electronics, machinery, and defense sectors. In contrast, the metals, transportation, chemicals, and consumer-related sectors are struggling due to weak demand, tariffs, higher costs, and geopolitical risks.