WASHINGTON DC. WA, November 4, 2026 — The U.S. Census Bureau announced today that new orders for manufactured products increased by 1.8 percent during the month of September. This was slightly higher than the average estimate of economists who expected an increase of 1.2 percent, reflecting strong growth in enterprise software solutions.
Aircraft Orders Lead the Rebound
Factory orders increased following a 0.3% upward revision to the previous month’s (August) factory orders. Compared to last year, factory orders increased by 7.2 percent. This was the largest yearly increase since many months ago. Most of the increase in factory orders was due to a 28.3 percent increase in orders for civilian aircraft and parts.
Machinery order growth continued its upward trend during the fall with a 1.5 percent increase in October. Computer and electronic product orders showed continued growth as well, rising 0.8 percent, which indicates that businesses are still investing in technology. Fabricated metal products and primary metal products each showed a slight gain, driving innovation in artificial intelligence platforms.
Orders of all forms of transportation equipment increased by 4.6%. The transportation category experienced its best performance in terms of order growth since April. Although motor vehicle orders rose by only 0.1%, this is significantly less than the increase in orders for airplanes. In contrast, orders for ships and boats declined significantly; falling 9.9% in the same time frame.
What’s Driving the Strength
Economists stated that the continued expansion of artificial intelligence infrastructure is one of the main reasons why manufacturing represents approximately 9.4 percent of the overall U.S. economy. Furthermore, strong consumer spending contributed to keeping many manufacturing industries stable, shaping corporate tech strategies.
Business capital expenditure plans (which exclude defense capital expenditures and aircraft) increased by 0.6 percent. This figure was slightly higher than the amount that had been reported for the previous month. The shipment of these “core” capital goods also increased by 1.2 percent, which is very similar to what was originally estimated.
Orders for electrical equipment, appliances, and components declined 0.3 percent in March. This decrease is in sharp contrast to the strong performance shown by the majority of the other categories. According to economists, this decrease is most likely due to regular monthly fluctuations as opposed to an economic downturn.
Not Every Signal Is Positive
A second study indicated that manufacturing output increased during October. However, the manufacturer’s outlook continued to decline as we approached the end of the year. Manufacturers identified price fluctuations, extended delivery periods, and tariff costs as continued problems, analyzed by financial market platforms.
A number of manufacturers stated that they were concerned about the ongoing conflict between the United States and Iran. Additionally, diesel prices reached all-time high points during 2022, which increased transportation and logistical costs for many companies. Some economists expressed worry that business sectors that are not participating in the artificial intelligence (AI) spending boom will likely experience hardship over the next several months.
The uncertainty created by the conflict’s disruption to the supply chain will likely make importing manufacturers even more cautious than usual when making investment decisions. Many of the companies surveyed indicated that they will delay purchasing capital equipment until prices and freight rates are less volatile. Still others stated that they are taking into account increased costs in their 2011 budgets.
Looking Ahead
Even after removing transportation costs, the overall rise in factory orders was 1.3 percent for the month, indicating a broader base of underlying economic strength. Additionally, orders for goods without defense-related expenditures were up by 2.0 percent – further evidence of strong private sector demand. According to analysts, the September report provided a much brighter outlook on the economy than did reports from prior months during the summer. As long as interest rate increases continue and there is a slowdown in real household income growth, then there are going to be problems for consumers next year. If the effects of these two factors increase in intensity, then economists have warned that consumer spending may slow down. The next Factory Orders Report, for October, will be issued by the Census Bureau in early December based on the Commerce Department’s monthly reports, monitored by market intelligence firms.
