US factory orders slip 1.3% in May as aircraft demand plunges

U.S. factory orders fell 1.3% in May, marking a reversal from April’s 5.3% rise. Durable‑goods orders dropped 4.5% to $332.1 billion, the steepest decline since June 2025, largely driven by a 14% plunge in transportation equipment. Commercial‑aircraft orders collapsed 51.8% after a 167.4% surge the month before, with Boeing reporting just 27 aircraft orders in May versus 136 in April.

Despite the setbacks, other segments remained resilient. Orders for computers and electronic products rose 0.2% and were up 13.0% year‑on‑year, while machinery orders increased 2.1%. AI‑related investment helped keep overall manufacturing activity expanding for a sixth straight month, with year‑on‑year growth of 5.1% in total factory orders.