U.S. Posts Decline in Durable Goods Orders

RunWithRugs · 2026-02-26T07:11:43+00:00

U.S. manufacturing demand weakened in December 2025, with durable goods orders dropping by 0.7%. However, shipments rose slightly, and backlogs increased significantly, indicating sustained demand in the production pipeline.

RunWithRugs

2026-02-26 07:11:43

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(MENAFN) U.S. manufacturing demand weakened at the end of 2025, with new durable goods orders falling more than anticipated in December, according to delayed figures released Monday by the Census Bureau.

Orders for manufactured durable goods — a key gauge tracking changes in the value of new purchase commitments to factories — declined by $4.3 billion, or 0.7%, to $617.5 billion in December. The drop reversed a 2.7% rise recorded in November and marked the second monthly decrease in the past three months.

Despite the decline in new orders, shipments continued to edge higher. Deliveries increased by $3.1 billion, or 0.5%, reaching $609.2 billion. Shipments have now advanced in two of the last three months.

Backlogs also expanded. Unfilled orders climbed by $13.4 billion to $1.52 trillion in December, extending gains in 17 of the previous 18 months — a sign that demand in the production pipeline remains elevated.

Inventories rose for a third straight month, increasing by $1 billion to $949.6 billion. Meanwhile, the inventories-to-shipments ratio eased slightly to 1.56 in December from 1.57 in November.

Factory orders data are closely watched as a leading indicator of near-term industrial activity. The manufacturing sector remains a critical pillar of the U.S. economy, making shifts in order volumes a key signal for broader growth trends.

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