FX.co ★ US Factory Orders Fall Less than Expected

US factory orders declined 1.3% month-over-month in May 2026, following an upwardly revised 5.3% jump in April and coming in better than market expectations for a 1.8% drop. The headline decrease was largely driven by a 4.5% fall in durable goods orders, led by a 14% contraction in transportation equipment, reflecting a sharp 51.8% plunge in orders for nondefense aircraft and parts. Orders for electrical equipment, appliances, and components also edged down 0.3%. Excluding transportation, however, factory orders rose 1.9%, building on a 1.7% increase in April. Within this category, orders advanced for fabricated metal products (1.4%), machinery (2.1%), and computers and electronic products (0.2%). Meanwhile, orders for nondurable goods climbed 2.2%.