US core capital goods orders surge in August
SPY•Core capital goods orders rose 1.6% in August after a revised 0.6% gain in July, exceeding economists’ 0.5% forecast. Shipments increased 0.6%.
1. Orders rise sharply
New orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending, jumped 1.6% in August. July’s increase was revised up to 0.6% from a previously reported unchanged reading.
2. Shipments and spending
Shipments of core capital goods, which feed into the equipment-spending component of gross domestic product, rose 0.6% after advancing 1.4% in July. Business equipment spending has posted two straight quarters of double-digit growth, largely fueled by investment in artificial intelligence, while economists warned that rising oil prices, interest rates and long-term Treasury yields could weigh on manufacturing outside AI-related segments.
