U.S. factory orders increased 1.8% in September 2026, supported by stronger demand for civilian aircraft, machinery and electronic products, according to the U.S. Census Bureau. The increase exceeded economists’ expectations and followed a revised gain in August. Higher core capital goods orders also pointed to continued business equipment demand, providing a broader picture of manufacturing activity beyond the sharp increase in aircraft bookings.
Key Takeaways
- U.S. factory orders increased 1.8% in September 2026, following a revised 0.3% rise in August
- Civilian aircraft and parts orders jumped 28.3%, contributing significantly to the monthly increase
- Machinery orders rose 1.5%, while computer and electronic product orders increased 0.8%
- Computer and electronic product orders were 14.9% higher than in September 2025
- Core capital goods orders excluding aircraft increased 0.6%, while shipments rose 1.2%
U.S. Factory Orders Increase Following August Growth
New orders for U.S. manufactured goods climbed 1.8% in September 2026 to $677.2 billion, according to data released by the Census Bureau on November 3. The increase followed a revised 0.3% gain in August and exceeded economists’ expectations of a 1.2% monthly rise.
Factory orders were also 7.2% higher than in September 2025. The annual increase provides a longer-term comparison, while the monthly figures indicate that new manufacturing demand strengthened between August and September.
The improvement was consistent with September manufacturing survey findings, which showed the Institute for Supply Management’s New Orders Index rising to 55.3 from 53.7 in August. Although the survey and Census Bureau figures use different methodologies, both indicated stronger incoming demand during September.
Factory orders measure the value of new orders received by domestic manufacturers, making them an important indicator of industrial demand. However, the figures do not directly measure completed production or deliveries, which are tracked through separate manufacturing indicators.
September’s increase reflected gains across several industries, although aircraft bookings accounted for a particularly large portion of the growth.
Aircraft Bookings Drive a Significant Share of September Orders
Civilian aircraft and parts orders increased 28.3% in September, making the category one of the largest contributors to the overall rise in factory orders.
Aircraft purchases can substantially influence monthly manufacturing statistics because individual orders often involve large financial commitments. As a result, changes in aircraft bookings can create considerable fluctuations in the headline factory-orders figure.
Transportation equipment orders increased 4.6% overall, reflecting the strength of aircraft demand. Other transportation categories recorded smaller changes, including a 0.1% increase in orders for motor vehicle bodies, parts and trailers.
The distinction between aircraft orders and actual deliveries is important. New orders represent commitments received by manufacturers, whereas shipments record products delivered to customers. September’s 28.3% increase therefore reflects stronger aircraft bookings rather than an equivalent rise in completed aircraft production.
Although aircraft demand played a major role, increases in machinery and electronic products indicated that the improvement extended beyond transportation equipment.
Machinery and Electronics Orders Record Additional Gains
Machinery orders increased 1.5% in September, while orders for computer and electronic products rose 0.8%. Both categories contributed to the overall increase in manufacturing demand.
Computer and electronic product orders were also 14.9% higher than in September 2025, reflecting a substantial annual increase. Machinery orders, meanwhile, provide insight into demand for equipment used across manufacturing, construction and other industrial activities.
Not all manufacturing categories recorded growth. Orders for motor vehicle bodies, parts and trailers edged up 0.1%, while electrical equipment, appliances and components declined 0.3%.
These differences demonstrate that manufacturing demand was uneven across industries. Aircraft, machinery and electronics supported the monthly increase, while some other categories experienced limited growth or modest declines.
The industry breakdown also helps distinguish demand for finished products from purchases of equipment businesses use in production. Both contribute to manufacturing activity, but they reflect different purchasing decisions and economic needs.
Core Capital Goods Orders Indicate Higher Equipment Demand
Non-defense capital goods orders excluding aircraft increased 0.6% in September, providing another indication of demand for business equipment.
Often described as core capital goods, this category excludes military equipment and aircraft, making it a closely watched measure of business spending plans. Removing aircraft is particularly useful when interpreting September’s results because civilian aircraft bookings rose sharply during the month.
Shipments of core capital goods increased 1.2%, indicating that manufacturers also delivered more equipment during the reporting period. While orders reflect new purchasing commitments, shipments capture goods that have already moved through production and delivery.
These measures are relevant to business investment in equipment, which contributes to productive capacity and broader economic activity. However, new orders do not necessarily translate into business investment recorded in GDP during the same month.
The simultaneous increases in core capital goods orders and shipments provide evidence of continued activity in the equipment market. The 0.6% rise in orders was smaller than the overall 1.8% factory-orders increase, but it shows that demand strengthened even when aircraft were excluded from the measure.
For manufacturers and financial analysts, these figures help assess business purchasing plans and the movement of equipment through the production process.
Manufacturing Shipments and Inventories Add Economic Context
Beyond new orders, the Census Bureau’s September report showed increases in manufacturing shipments, unfilled orders and inventories.
Total shipments of manufactured goods rose 1.3% to $668.5 billion, while unfilled orders increased 0.9% to approximately $1.62 trillion. Manufacturing inventories also advanced 0.4%, reaching $976 billion.
Each indicator provides a different perspective on factory activity. Shipments measure goods delivered to customers, unfilled orders represent outstanding commitments, and inventories show the value of products and materials held by manufacturers.
The increase in unfilled orders suggests that manufacturers received more new business than they completed during the month. However, a larger order backlog does not necessarily indicate immediate production growth because fulfillment schedules vary across industries.
Similarly, inventory growth can reflect several factors, including production planning, supply availability and expectations about future demand. Changes in inventory levels are therefore best interpreted alongside orders and shipments rather than as independent evidence of stronger sales.
Together, September’s figures showed higher incoming demand, increased deliveries and a modest expansion in manufacturing inventories.
What September’s Factory Orders Mean for U.S. Manufacturing
September’s 1.8% increase in factory orders provided evidence of stronger demand across several major manufacturing categories. Civilian aircraft bookings made a substantial contribution, but gains in machinery, electronics and core capital goods showed that the improvement was not limited to one industry.
The figures also highlighted continued business equipment activity. Core capital goods orders increased 0.6%, while shipments advanced 1.2%, suggesting that manufacturers were receiving new equipment orders while delivering previously ordered products.
Nevertheless, stronger factory orders do not automatically translate into equivalent increases in industrial production, employment or overall economic growth. Manufacturers must fulfill orders over time, and demand conditions can vary considerably between industries.
For businesses, investors and policymakers, the September report offers a useful measure of industrial demand and equipment purchasing activity. Future manufacturing data will help determine whether the increase represents sustained growth in orders or a shorter-term improvement influenced by large purchases.
Frequently Asked Questions
How much did U.S. factory orders increase in September 2026?
U.S. factory orders increased 1.8% in September 2026, reaching $677.2 billion. The increase followed a revised 0.3% gain in August and exceeded economists’ expectations of 1.2% growth.
Which manufacturing categories recorded the largest order increases?
Civilian aircraft and parts orders rose 28.3%, making them a major contributor to the overall increase. Machinery orders advanced 1.5%, while computer and electronic product orders increased 0.8%.
How much did civilian aircraft and parts orders increase?
Civilian aircraft and parts orders increased 28.3% in September 2026. The substantial rise helped drive the overall increase in manufacturing orders during the month.
What are non-defense capital goods orders excluding aircraft?
Non-defense capital goods orders excluding aircraft measure new orders for business equipment while excluding military equipment and aircraft. The indicator is commonly used to assess underlying business equipment demand without the volatility associated with large aircraft purchases.
How do factory orders measure U.S. manufacturing activity?
Factory orders measure the value of new orders received by domestic manufacturers. They provide insight into incoming demand and can be examined alongside shipments, inventories and unfilled orders to assess manufacturing conditions.
