US Factory Orders Jump 4.8% in April as Defense and AI Fuel Manufacturing
Updated
Updated · POLITICO · Jun 4
US Factory Orders Jump 4.8% in April as Defense and AI Fuel Manufacturing
3 articles · Updated · POLITICO · Jun 4
Summary
Commerce Department data showed U.S. factory orders rose 4.8% in April, the strongest monthly gain in nearly a year and a rare bright spot in a sluggish broader economy.
Defense demand, the AI buildout and broader tech investment drove the increase, while the ISM manufacturing index expanded for a fifth straight month and the Fed’s Beige Book said manufacturing was the strongest hiring sector in several districts.
Analysts said the rebound is not yet broad-based: some of the gain reflects higher prices rather than volumes, and manufacturing payrolls still have not meaningfully recovered in Trump’s first year back in office.
Goldman Sachs said forward-looking indicators put the sector firmly in expansion, giving the White House evidence to argue that tariffs, deregulation and investment-friendly tax policy are lifting domestic production even as voters remain focused on inflation and $4-plus gasoline.