US Factory Orders Edge Up 0.1% in August as Aircraft Weakness Offsets Electrical Demand

New orders for US factory goods rose just 0.1% in August, the Census Bureau reported on Oct. 2, 2026, as a 4.3% drop in civilian aircraft orders offset strength in electrical equipment and machinery. July's gain was revised down to 0.8%. Orders were up 6.8% year over year. An AI infrastructure buildout and inventory restocking are supporting manufacturing, though economists warn segments outside that spending boom face headwinds. Core capital goods orders, a gauge of business equipment investment, rose 1.6%. Machinery orders climbed 1.1%, electrical equipment 1.1% and motor vehicle parts 0.8%. Computer and electronic product orders were flat but up 14.7% annually. Risks include record diesel prices, tariffs and supply chain disruption from the US-Israeli war with Iran.