US Factory Orders Stalled in February Amid Mixed Demand

US Factory Orders Stalled in February Amid Mixed Demand

New orders for manufactured goods in the United States were reported to have remained unchanged in February 2026 at $619.6 billion, according to data released by the U.S. Census Bureau. The flat reading contrasted slightly with market expectations of a modest 0.2% decline and marked what appeared to be a second consecutive month of stalled growth. The data suggested that while overall demand did not weaken further, momentum in the manufacturing sector may have remained subdued amid mixed underlying trends.

A closer breakdown indicated that orders for durable goods declined by 1.3% to $315.9 billion, largely driven by a sharp drop in transportation equipment. Within that category, orders for nondefense aircraft and parts were reported to have plunged significantly, contributing heavily to the overall decline. However, this weakness appeared to have been partially offset by gains in other segments, including machinery, primary metals, and fabricated metal products, each of which posted moderate increases during the month. These gains suggested that some areas of industrial demand may have remained resilient despite broader softness.

Meanwhile, orders for nondurable goods rose by 1.5% to $303.7 billion, helping to stabilize the overall reading. The increase in nondurable goods orders was seen as a supportive factor, indicating that demand for shorter-cycle products may have held up better compared to more volatile durable goods categories. Analysts had suggested that such divergence could reflect shifting demand patterns, as businesses and consumers adjusted spending amid ongoing economic uncertainties.

Separate estimates indicated that US factory orders overall showed no monthly change in February, reinforcing the view of a sector in a holding pattern. Forecasts from Trading Economics suggested that factory orders could rise modestly by around 1.0% by the end of the current quarter, with longer-term projections pointing to a gradual expansion trend. However, future performance was still likely to depend on business investment, global demand conditions, and broader economic developments, leaving the near-term outlook uncertain.