US core capital goods orders rise, shipments post largest gain in 4-1/2 years amid AI investment boom
Orders for computers and electronic products led the gain, while shipments rose 1.9%, pointing to firmer business equipment spending.
- The Commerce Department reported on Monday that core capital goods orders rose 0.9% last month, following an upwardly revised 1.9% increase in May.
- Businesses are ramping up AI-related investment, fueling demand for information processing equipment. Orders for computers and electronic products soared 3.1%, while electrical equipment orders rose 0.9%.
- Shipments of core capital goods surged 1.9%, supporting a 0.3% rebound in overall durable goods orders. Machinery orders dipped 0.1% amid a 0.6% decrease in motor vehicle demand.
- Economists estimate the economy grew at a 2.1% annualized rate during the January-March period. Christopher Rupkey, chief economist at FWDBONDS, said corporate capital expenditures are keeping the economy afloat despite Middle East tensions.
- Fiscal measures from Last year continue to support qualified capital investment as a tailwind. Businesses remain optimistic about future spending despite risks from US-led hostilities with Iran and higher energy prices.
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The Times of Northwest Indiana
AI expansion sustains June capital spending
WASHINGTON — New orders for key U.S.-manufactured capital goods increased strongly in June while shipments surged by the most in 4½ years as businesses ramped up spending on artificial intelligence, suggesting the economy maintained a fairly strong pace of growth…
US core capital goods orders rise, shipments post largest gain in 4-1/2 years amid AI investment boom
WASHINGTON — New orders for key U.S.-manufactured capital goods increased strongly in June while shipments surged by the most in 4-1/2 years as businesses ramped up spending on artificial intelligence, suggesting the economy maintained a fairly strong pace of growth in the second quarter. The post US core capital goods orders rise, shipments post largest gain in 4-1/2 years amid AI investment boom appeared first on Hawaii Tribune-Herald.
US core capital goods orders climb 0.9% in June, beats expectations
U.S. manufacturing showed resilience in June with increased equipment investment. New orders for capital goods excluding aircraft rose significantly last month. Shipments of core capital goods also improved, indicating strong business spending. This trend supports expectations for steady economic growth through the second quarter. Artificial intelligence expansion continues to drive this manufacturing and economic activity.
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