US factory orders rose 1.5% month-over-month to $630.4 billion in March 2026, beating market expectations of 0.5% and following an upwardly revised 0.3% increase in February. New orders for manufactured durable goods increased 0.8% to $318.9 billion, ending three straight months of declines. Computers and electronic products surged 3.6%, the most since March 2001, with electromedical, measuring, and control instruments up 7.9% to a record high amid an AI investment boom and data center construction. Transport equipment orders also rose 0.8%, led by vehicles (0.9%), defense aircraft and parts (17.8%), and ships and boats (30.9%). Gains were also seen in machinery (0.9%), electrical equipment, appliances, and components (0.8%), and primary metals (0.5%). Nondurable goods orders rose 2.1% to $311.5 billion, the highest level since October 2022. Excluding transportation, factory orders grew 1.6% in March, while excluding defense, orders rose 0.9%.