Factory backlogs build as freight and steel costs climb

Unfilled factory orders hit $1.61 trillion in August as shipments stalled, and steel, freight and diesel cost manufacturers more in September.

What happened

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Why it matters

Unfilled orders at U.S. factories rose 0.6% to $1,609.6 billion in August, and shipments stalled, the Census Bureau said in its Oct. 2 report on manufacturers’ shipments, inventories and orders. Backlogs have increased in 25 of the last 26 months. Transportation equipment accounted for $1,009.9 billion of the total and led the August increase.

Shipments were virtually unchanged at $658.6 billion, the first stall after eight monthly gains. New orders rose 0.1% to $663.5 billion. The ratio of unfilled orders to shipments rose to 6.87 from 6.81. Census does not adjust the figures for inflation.

Orders for motor vehicle bodies, parts and trailers rose 0.8%. Machinery orders rose 1.1%. Nondefense capital goods orders excluding aircraft rose 1.6%. Durable goods orders fell 0.1%, with transportation equipment down 0.7% and nondefense aircraft and parts down 4.3%.

This news brief is based on reporting published by FreightWaves on 2026-10-08. The original report is linked below.