U.S. factory orders excluding transportation rose 0.4% month-over-month in December 2025, doubling the pace of November’s 0.2% gain, according to data updated on 23 February 2026. The indicator tracks changes in orders for manufactured goods while stripping out the often volatile transportation component, providing a clearer view of underlying demand in the industrial sector.
The December reading, compared with November 2025, suggests a modest but improving trend in core manufacturing activity. November’s 0.2% increase had already marked a positive shift from the month before, and the acceleration to 0.4% in December points to gradually strengthening order books for U.S. manufacturers as the year closed.
On a month-over-month basis, the improvement in the “ex transportation” measure indicates that the pickup in factory demand is not being driven solely by large, irregular transportation orders. Instead, it reflects broader support from other industrial categories, reinforcing the picture of a manufacturing sector that is stabilizing and gaining some traction heading into 2026.
