New orders for manufactured goods in the US plunged by 6.3% from the previous month to $296.3 billion in April 2025, marking the sharpest monthly drop since January 2024.
US durable goods plunge in April
Although significant, the decline was slightly less severe than market forecasts of a 7.8% fall. This contraction offset much of the revised 7.6% surge recorded in March, reflecting a reversal in momentum as businesses pulled back amid growing uncertainty. The downturn was largely attributed to the implementation of broad 10% reciprocal tariffs at the start of the month, which disrupted supply chains and triggered a cautious stance among manufacturers and buyers alike. Additionally, a noticeable softening in demand followed the front-loading of orders in March, when companies rushed to place purchases ahead of the tariff rollout.
Transportation equipment sector declines
The transportation equipment sector saw a particularly steep decline, with orders plummeting by 17.1% to $98.8 billion. Within this category, non-defense aircraft and parts orders collapsed by 51.5% to $18.1 billion, as escalating trade tensions led airlines to delay or cancel purchases. Boeing, facing direct headwinds from both tariffs and geopolitical friction, received only eight aircraft orders during the month, a stark drop from typical monthly volumes. Capital goods also posted a sharp contraction, with new orders falling 14.6% to $101.4 billion—an indicator of weaker business investment sentiment amid economic and policy uncertainty. The data underscores the fragile state of the manufacturing sector as it navigates the early impact of trade barriers and shifting global demand dynamics.
