June factory orders fell short of expectations, signaling moderation in manufacturing activity amid high capital expenditures in chip production.
US factory orders declined 0.3% in June, below the 0.2% increase economists had anticipated. The drop follows a revised 1.1% decline in May, initially reported at -1.3%.
Durable goods orders were revised upward to 0.5% from a preliminary 0.3%, while non-defense capital goods excluding aircraft rose 1.2%, exceeding the initial 0.9% estimate. Excluding transportation, factory orders fell 0.4%, a sharp reversal from May’s 1.9% gain.
The report highlights a divergence in capital spending, with significant investments in semiconductor fabrication plants absorbing much of the outlay, despite broader manufacturing softness.