U.S. factory orders fell sharply in May 2026, reversing part of the strong gains seen a month earlier, according to data updated on 2 July 2026. New orders dropped 1.3% month-over-month in May, following a robust 5.3% increase in April 2026.
The month-over-month comparison highlights a notable loss of momentum in manufacturing demand after April’s surge. While the prior month’s figure pointed to a strong upswing in orders, May’s negative reading underscores renewed softness in the sector and raises questions about the durability of the recent rebound. Investors and policymakers will be watching upcoming data closely to determine whether May’s decline is a temporary pullback or the start of a broader cooling in U.S. factory activity.
