AI investment boom drives US core capital goods orders, shipments higher in September
SPY•US core capital goods orders rose 0.5% in September, while shipments jumped 1.2%. Economists estimated business equipment spending grew at roughly a 20% annualized rate in the third quarter.
1. Orders and shipments rise
Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, increased 0.5% in September after rising 1.6% in August. Orders were up 10.9% from a year earlier, while shipments rose 1.2% for the month and 8.8% year on year.
2. Investment outlook
Economists estimated business spending on equipment grew at roughly a 20% annualized rate in the third quarter, which would mark a third straight quarter of double-digit growth. The article said AI-related spending is supporting manufacturing and the economy, while rising project costs and borrowing costs could weigh on future equipment investment.
