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US Factory Orders Experience Unexpected Decline in December

Washington: New durable goods orders in the US fell 0.7% in December 2025 from the previous month, more than expected, according to delayed data released Monday by the Census Bureau. New orders for manufactured durable goods, which measure the change in the value of new purchase orders placed with manufacturers, dropped $4.3 billion to $617.5 billion in December.

According to Anadolu Agency, the fall followed a 2.7% monthly increase in November, with orders down in two of the last three months. Shipments, however, have shown some resilience, rising by $3.1 billion, or 0.5%, to $609.2 billion. This marks an increase in shipments for two of the last three months.

Unfilled orders continued their upward trend, increasing by $13.4 billion in December to reach $1.52 trillion, marking a rise in 17 of the last 18 months. Inventories also rose for the third consecutive month, climbing by $1 billion to $949.6 billion in December.

The inventories-to-shipments ratio saw a slight decrease to 1.56 in December, down from 1.57 in November. Factory orders data are critical for determining the near-term performance of the industrial sector, which plays a significant role in the US economy.