Orders for the industry are scheduled for 4th August, 2025 at 16:24.
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The U.S. industrial sector experienced a setback in June 2025, with orders for manufactured goods decreasing by 4.8%. This marked the steepest monthly decrease since April 2020, according to a report released by the U.S. Department of Commerce.
The decline was primarily driven by a collapse in transportation equipment orders, particularly a 51.8% drop in civilian aircraft orders and a 20.0% drop in ship orders. These declines followed significant increases in May.
Orders for non-aircraft civilian capital goods, often seen as a gauge of business investment, also saw a marked decline, mirroring the weakness in transportation equipment demand.
While other manufacturing sectors showed small gains, they could not offset the downturn in transportation-related orders. Primary metals, fabricated metal products, machinery, computers and electronic products, and electrical equipment experienced modest increases in orders.
Industrial production overall rose modestly in June by 0.3%, with manufacturing output flat for durable goods and slightly up for nondurables. However, the decline in motor vehicles and parts production weighed on the overall figures, reflecting softer demand partly due to higher prices and tariff-related effects.
Excluding transportation orders, U.S. industrial orders increased by 0.4% in June. Orders for durable goods excluding aircraft also saw a decline, with a revised 8.3% increase in May followed by a 9.4% decrease in June according to a second estimate.
The initial report had indicated a decline of 9.3% in orders for durable goods. The decline in U.S. industrial orders in June was in line with economists' expectations.
It's important to note that the report on U.S. industrial orders for June did not include data on orders for all industries. The steep drop in shipments and new orders for civilian aircraft exerted significant downward pressure, indicating a softening in that segment of durable goods.
In summary, the decrease in U.S. industrial orders in June 2025 was largely caused by a collapse in transportation equipment orders, particularly a 51.8% drop in civilian aircraft orders and a 20.0% drop in ship orders after big increases in May. Other manufacturing sectors showed small gains but could not offset the downturn in transportation-related orders. Industrial production overall rose modestly, but was dragged down by declines in motor vehicles and parts production.
The decline in civilian aircraft orders, which constitutes a significant part of the transportation industry, was a major contributor to the drop in non-aircraft civil capital goods orders – a indicator of business investment. The downward trend in the finance sector might also be initiated due to the anticipated financial impact of the steep drop in orders for certain industries, particularly civilian aircraft and shipping.
