A steep drop in civilian aircraft orders in March contributed to the largest monthly decline in U.S. factory orders since March of 2009, according to figures released Wednesday by the Commerce Department.
New orders for manufactured goods fell by 1.5 percent to $460.5 billion in March following a 1.1 percent increase in February.
While the March decrease is slightly less severe than the 1.6 percent decline predicted by most economists, the February increase was downwardly revised from the 1.3 percent increase initially reported.
A 47.6 percent drop in orders of non-defense aircraft and parts - traditionally one of the most volatile sectors of the economy - contributed to a 12.6 percent decline in overall orders for transportation equipment.
Excluding transportation orders, factory goods orders were up slightly, though the increase was less than one tenth of a percent. According to Commerce Department figures, non-transportation factory orders have been up six of the last seven months.
Non-defense factory orders, which posted a 0.9 percent increase in February, were down 1.6 percent in March.
Orders for durable goods dropped 4 percent in March, the second monthly decline since the beginning of 2012.
While orders for metals, machinery, and computers and electronic products all fell in March, orders for electrical equipment, appliances and components showed an increase for the month.
The report also showed that shipments of manufactured goods rose for the tenth consecutive month, climbing by 0.7 percent in March. Inventories rose by a more modest 0.3 percent.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.