Factory orders in the US fell 1.3% month-over-month in May 2026, following an upwardly revised 5.3% surge in April and compared with market expectations for a 1.8% decline. The decrease was driven by a 4.5% drop in durable goods orders, led by a 14% slump in transportation equipment, largely reflecting a 51.8% plunge in orders for nondefense aircraft and parts. Orders for electrical equipment, appliances, and components also slipped 0.3%. Excluding transportation, factory orders rose 1.9%, extending April's 1.7% increase. Gains were recorded in fabricated metal products (1.4%), machinery (2.1%), and computers and electronic products (0.2%). Meanwhile, orders for nondurable goods increased 2.2%.