Due to a sharp drop in commercial aircraft orders, US factory orders in June fell by 4.8% month-on-month.

The U.S. Census Bureau announced that due to a significant decrease in commercial airplane orders, U.S. manufacturing new orders in June fell by 4.8% from the previous month, reversing the strong rebound seen in May due to a surge in airplane orders. The data shows that the June decline in U.S. factory orders was in line with the expectations of economists surveyed by foreign media. The May order growth rate, originally reported as 8.2%, was revised up to 8.3%. Despite the decline in June, overall orders increased by 3.8% compared to the same period last year. The Commerce Department points out that the decline in orders was mainly due to a sharp decrease in commercial airplane orders. As airplanes are high-priced capital goods, fluctuations in their orders have a significant impact on overall manufacturing data. The surge in airplane orders in May had driven a recovery in the overall manufacturing sector, while the sharp drop in June quickly dragged down overall performance. Manufacturing accounts for 10.2% of the U.S. Gross Domestic Product (GDP), but in recent years, it has been constrained by multiple factors and has shown signs of weakness. Especially under the aggressive trade policies pushed by President Trump, the manufacturing sector faces even greater challenges. The Trump administration has imposed high tariffs on a variety of imports to protect domestic industries and increase government revenue to offset the fiscal deficit caused by tax cuts, but this has also led to increased production costs and supply chain constraints. Data released by the Institute for Supply Management (ISM) last Friday showed that the U.S. manufacturing activity index in July dropped to a nine-month low, further indicating a weakening of manufacturing momentum. Economists generally believe that Trump's plan to "revive" manufacturing through tariffs is difficult to achieve in the short term. On one hand, the U.S. faces a labor shortage, making it difficult for companies to quickly expand production capacity, and on the other hand, adjustments to manufacturing infrastructure and supply chain restructuring cannot be completed overnight.