US factory orders dropped 0.3% month-over-month in June to $656.5 billion, marking the second straight monthly decline and catching forecasters off guard. The core measure, which strips out the volatile transportation sector, posted its steepest fall in a year.
The numbers tell a clear story
The US Census Bureau released its full Manufacturers’ Shipments, Inventories, and Orders report on August 4, and the headline wasn’t pretty. June’s 0.3% decline followed an even uglier 1.1% drop in May, creating a two-month losing streak that contrasts sharply with April’s 4.8% surge.
Durable goods new orders actually rose 0.3% in June to $334.8 billion, driven primarily by gains in computers and electronics. Core capital goods orders, a closely watched proxy for business investment, climbed 0.9%.
Why this matters for the Fed and risk assets
