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U.S. Factory Orders Plunge on Aircraft Decline

Orlando Newkirk by Orlando Newkirk
August 4, 2025
in Economics
Interior view of a large manufacturing facility with various equipment and workstations.

The U.S. factory orders experienced a significant decline in June because commercial aircraft bookings decreased after the strong May results. The Commerce Department announced that orders decreased by 4.8% following a 8.3% upward revision of the previous month’s increase which matched market predictions. Orders rose 3.8% year over year.
The manufacturing sector continues to experience persistent weakness because it represents only 10% of the economy while facing ongoing challenges from President Donald Trump’s imported goods tariffs. The U.S. factory sector reached its lowest point in nine months according to the Institute for Supply Management survey conducted last week.
The President supports tariffs because they help restore U.S. industry and finance tax reductions yet economists predict that short-term gains will be impossible due to fundamental labor shortages and other limitations.
The June decline in orders resulted from unpredictable aircraft orders which cause frequent monthly fluctuations. The manufacturing sectors demonstrated moderate growth in orders after removing transportation data which indicated their ability to resist trade-related challenges.

Tags: U.S. factory
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