U.S. Factory Orders Decline in June but Core Demand Remains Robust

U.S. manufacturing orders experienced a decrease in June due to a slowdown in aircraft bookings; however, core indicators demonstrated resilience, indicating sustained demand into the summer months. Total new orders dropped by 4.8% to $611.7 billion, slightly better than the anticipated 5.0% decline by Econoday. Excluding the volatile transportation sector, orders increased by 0.4% to $498.6 billion, a key measure of industrial demand beyond aircraft and automobiles. Further excluding transportation and defense, orders grew by an even stronger 0.8%, reaching $483.5 billion from $479.6 billion in May. Transportation remained the primary driver of volatility. Orders for transportation equipment plummeted by 22.4% to $113.1 billion, mainly due to a 51.8% decline in nondefense aircraft and parts after May's surge. Conversely, defense aircraft orders increased by 5.0%. Orders for nondurable goods edged up by 0.5% to $299.9 billion, providing some support to the overall figures. When excluding aircraft and defense, durable goods orders rose modestly by 0.4%. Notable increases were seen in industrial machinery, which grew by 6.9% to $3.51 billion, and primary metals, up 0.6% to $26.51 b...