US factory orders rise more than expected in March

May 4 (Reuters) - 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.

(Reporting by Dan Burns; Editing by Paul ‌Simao)

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