U.S. factory orders and shipments rose in July, Census says

U.S. factory orders, shipments and unfilled orders all increased in July, giving manufacturers a firmer month while leaving questions about how broad and durable the improvement will be.

The U.S. Census Bureau reported on September 2, 2026, that new orders for manufactured goods rose $5.8 billion, or 0.9%, to $663.6 billion. Shipments increased $5.3 billion, or 0.8%, to $658.8 billion. The orders increase followed a 0.2% decline in June.

The figures matter beyond factory floors. New orders can provide an early signal of demand for suppliers and transportation services, while shipments show goods moving through the production system. Unfilled orders measure work still in the pipeline, but they do not guarantee that all backlogged production will be completed immediately.

Orders, shipments and inventories all moved higher

Unfilled orders rose $9.9 billion, or 0.6%, to $1.6003 trillion. The unfilled-orders-to-shipments ratio edged down to 6.81 from 6.84 in June. The decline indicates that shipments increased relative to the size of the outstanding order book during the month.

Manufacturers’ inventories increased $3.5 billion, or 0.4%, to $966.9 billion. The inventories-to-shipments ratio held at 1.47. Inventory growth can reflect several factors, including production plans, order timing and the movement of goods through the supply chain, so the figure alone does not show whether demand strengthened.

Aircraft provided a major lift

Aircraft demand was a central reason the headline numbers improved. Reuters reported that civilian aircraft and parts orders jumped 12.7% in July, helping lift the broader factory-orders result above economists’ expectations.

The Census Bureau’s advance durable-goods report showed that durable-goods orders rose 1.1% to $339.3 billion. Transportation equipment led the increase, rising $2.6 billion, or 2.3%, to $116.2 billion. Orders excluding transportation increased 0.4%.

That mix matters for supply chains. A large aircraft order can add substantially to total manufacturing demand while affecting a narrower set of producers than a broad increase in machinery, electronics, fabricated metals and other categories would.

Why this is not yet a broad rebound signal

The July report offers evidence of firmer activity, but it does not establish a nationwide manufacturing revival. Results were uneven by industry, and core non-defense capital-goods orders excluding aircraft were unchanged in July. Those orders are closely watched as a measure of business-equipment demand.

In other words, factories received more orders and shipped more goods, but the report does not show that businesses across the economy suddenly accelerated equipment investment. One month of stronger data can reflect the timing of large contracts, especially in transportation equipment.

Manufacturing employment also improved

The labor-market picture provided some additional support. In its August employment report, released September 4, 2026, the Bureau of Labor Statistics said manufacturing employment rose by 16,000 during the month and was up 58,000 from a recent low in December 2025.

Machinery manufacturing and fabricated metal product manufacturing each added 6,000 jobs in August. The average manufacturing workweek edged up to 40.5 hours, while overtime was unchanged at 3.1 hours.

Those gains show recent improvement in factory employment, but they do not prove that hiring is accelerating across the country. Employment, orders and shipments can move at different speeds, and the next reports will be needed to determine whether July’s stronger activity continues.

What to watch next

Future factory-orders and durable-goods reports will show whether core capital-goods demand begins to strengthen and whether gains spread beyond transportation equipment. Employment reports will also help indicate whether manufacturers are adding workers and hours consistently.

For now, the July figures point to firmer near-term activity in U.S. manufacturing, with aircraft orders doing much of the lifting. Sustained gains across more industries and over several months will be needed before the data support calling it a broad manufacturing recovery.

Sources

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