U.S. factory orders declined in December 2025, underscoring a loss of momentum in the manufacturing sector after a strong prior month. According to the latest data updated on 23 February 2026, factory orders fell 0.7% month-over-month, a sharp reversal from November 2025, when orders had risen by 2.7%.
The figures, measured on a month-over-month basis, highlight a clear shift in demand dynamics at year-end. While November’s robust gain had suggested strengthening activity, December’s pullback indicates that businesses may be growing more cautious, potentially in response to evolving economic conditions or softer downstream demand.
This turnaround in factory orders will be closely watched by investors and policymakers as a potential early signal of cooling in the broader U.S. industrial landscape, following what had been a solid upswing just one month earlier.
