US factory orders rise more than expected in March

New orders for U.S. factory goods ​rose more than expected ​in March, led by surging ​demand for electronics products amid the artificial intelligence investment boom.

Factory orders were up 1.5% on the month, the biggest ‌gain since November, ⁠from ⁠an upwardly revised 0.3% in February, the Commerce Department's ​Census Bureau said on Monday. Economists polled by Reuters had ​predicted a 0.5% rise. Orders increased 3.7% on a year-over-year basis in March. Manufacturing, which accounts ​for 10.1% of the economy, ⁠has been showing ‌some signs of recovery after ​being ​hammered by President Donald Trump's sweeping tariffs ⁠last year. But other reports on the ​sector have shown the U.S.-Israeli war ​with Iran has sent input costs rapidly upward, with oil prices surging by nearly 50%, and supplier delivery times growing longer.

The increase in March was led by the largest ‌single month in orders for the computers and electronics products category in 25 years. ​Orders climbed ​3.6% to $29.6 ⁠billion, the most since March 2001. Within that category, new orders for electromedical, measuring and control instruments rose ​7.9% to $10.6 billion, a record high.


Orders for durable goods rose 0.8%, as previously reported, while non-durable goods orders were up 2.1% to the highest level since October 2022.