US Factory Orders Jump Most in 11 Months in April

• Commercial aircraft orders soared 165.9% after Boeing received 136 orders in April compared to just 33 in March, mostly for expensive models
• Orders increased 6.0% year-over-year, with gains across primary metals (2.0%), fabricated metal products (3.5%), and machinery (0.7%)
• Core capital goods orders (excluding aircraft), a key measure of business investment plans, declined 1.0% while the ongoing Iran conflict continues to disrupt supply chains and elevate input prices

Summary: US Factory Orders Jump Most in 11 Months in April

Key Figures:

U.S. factory orders surged 4.8% in April 2026, marking the largest increase since May 2025 and exceeding economist forecasts of 4.6%. Orders rose 6.0% year-over-year, following an upwardly revised 1.8% gain in March (previously reported as 1.5%).

Main Drivers:

Commercial aircraft orders soared 165.9% after a 23.0% decline in March. Boeing reported receiving 136 orders in April, primarily for expensive models, compared to just 33 orders in March. Other gains included primary metals (+2.0%), fabricated metal products (+3.5%), machinery (+0.7%), and electrical equipment (+0.5%).

Weakness Areas:

Orders for computers and electronic products fell 0.7%, with computers declining 2.5%. Non-defense capital goods excluding aircraft—a key indicator of business spending plans—dropped 1.0% in April.

Market Context:

Manufacturing represents 9.4% of the U.S. economy and is currently supported by an AI spending boom. However, significant risks remain from the three-month U.S.-Israeli conflict with Iran, which has disrupted commodity shipping and elevated prices for energy, aluminum, and fertilizers. An ISM survey showed supplier delivery performance slowed for the sixth consecutive month in May, keeping input prices elevated.

Implications:

The strong factory orders data suggests resilient manufacturing demand despite geopolitical headwinds, though supply chain disruptions and elevated input costs may pressure margins. The robust Boeing orders indicate renewed confidence in commercial aviation, while weakness in core capital goods signals potential caution in broader business investment.