Selected indicators for the U.S. defense business environment
Manufacturers' new orders for defense capital goods
Manufacturers' New Orders: Defense Capital Goods is a data set released monthly by the US Census Bureau. This data set tracks how much money US manufacturers are receiving in new orders for military equipment and technology, from aircraft and missiles to small arms and communication systems. It gives us a snapshot of how active the defense industry is at any given time.
Capital expenditures and R&D investment by publicly traded defense companies
Public Defense Companies - Capex & R&D tracks the annual capital expenditures and research & development investment by publicly traded defense and aerospace companies. This measures how much these companies are investing in facilities, equipment, and innovation to support future growth and capabilities.
Source: Custom Research
Annual VC investment in defense and dual-use companies
Venture Capital Investment in Defense tracks the volume of venture capital dollars flowing into U.S. defense-focused and dual-use companies. This data is updated annually and reflects early-stage investment activity in defense technology and innovation.
Source: Ali Javaheri, “Defense Tech VC Trends,” PitchBook, May 27, 2026
Annual merger and acquisition activity in aerospace and defense
M&A Activity in Defense tracks the dollar value of mergers and acquisitions in the U.S. aerospace and defense sector. This includes private equity buyouts, strategic acquisitions by defense primes, and consolidation activity across the defense industrial base.
Source: Capstone Partners
Manufacturers' new orders for military aircraft and their parts
Defense Aircraft and Parts (ADAPNO) measures manufacturers' new orders for military aircraft and the components, subassemblies and replacement parts that go into them: engines, avionics, airframe structures and more. Because it includes parts, it moves with both new production and the upkeep of existing fleets.
Production output of defense and space equipment
The data set "Equipment: Defense and Space Equipment" measures how much the U.S. is producing in terms of military and space-related technology and machinery. Tracked monthly by the Federal Reserve, this index reflects the real output of U.S.-based manufacturers that build everything from weapons systems and armored vehicles to satellites and space launch components.
Federal defense consumption expenditures and procurement
National Defense Consumption Expenditures (FDEFX) measures the total federal government spending on defense goods and services. This includes military personnel, operations, procurement of weapons systems, and research & development.
Construction spending in the manufacturing sector
Manufacturing Construction Spending (PRMFGCONS) tracks expenditures on new manufacturing facilities, expansions, and renovations. This includes both defense-specific manufacturing facilities and the broader industrial base that supports defense production.
iShares U.S. Aerospace & Defense ETF investor sentiment
The iShares U.S. Aerospace & Defense ETF (ITA) tracks ETFs focused on the aerospace and defense sectors, reflecting investor sentiment. It is a basket of stocks of companies in the defense industrial base.
Source: Yahoo Finance
Overall U.S. industrial production output
Industrial Production Index (INDPRO) measures the real output of manufacturing, mining, and electric and gas utilities industries. The index is benchmarked to 2017=100 and provides a broad measure of industrial activity across the entire U.S. economy.
Manufacturers' new orders for all durable goods
Manufacturers' New Orders: Durable Goods (DGORDER) is the Census Bureau's monthly measure of new orders for goods built to last three years or more: machinery, vehicles, civil and military aircraft, electronics and more. It covers the whole economy, not just defense. Defense capital goods are about 5% of the total (3-9% in any given month since 2018; see Defense Capital Goods Orders under Capital Flows).
Private nonresidential fixed investment in structures and equipment
Private Nonresidential Fixed Investment (PNFI) measures business investment in structures, equipment, and intellectual property. This excludes residential construction and focuses on productive capital investments by businesses.
Gross private domestic investment
Gross Private Domestic Investment (GPDI) measures business investment, residential investment, and changes in private inventories. This is a major component of GDP and represents the total investment activity in the economy.
Net percentage of banks tightening standards for commercial loans
Lending Standards (DRTSCILM) measures the net percentage of domestic banks reporting tightened lending standards for commercial and industrial loans. Positive values indicate tightening (harder to get loans), while negative values indicate loosening (easier to get loans).
Industrial Select Sector SPDR Fund performance
XLI ETF tracks the Industrial sector of the S&P 500, including aerospace, defense, construction, engineering, machinery companies, and industrial conglomerates. It provides a broader view of industrial sector performance beyond just defense.
Source: Yahoo Finance
Industrial real estate REIT performance
Prologis (PLD) is the world's largest owner and operator of logistics real estate, including warehouses, distribution centers, and industrial facilities. Their properties support industrial and manufacturing activities across supply chains.
Source: Yahoo Finance
U.S. Treasury 10-year constant maturity rate
10-Year Treasury Yield (DGS10) is the yield on U.S. Treasury securities with a 10-year maturity. This is a key benchmark interest rate that influences borrowing costs across the economy.