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The US Census Bureau reported that new orders for non-defense capital goods excluding aircraft increased 1.6 percent in August following an upwardly revised 0.6 percent gain in July. Economists polled by Reuters had projected a more modest 0.5 percent rise after an initially reported flat reading for the previous month. Shipments of these core capital goods, which contribute to the business equipment component of gross domestic product calculations, advanced 0.6 percent last month after a 1.4 percent increase in July, according to the bureau.
Overall durable goods orders held virtually steady at $338.6 billion in August, the Census Bureau figures indicated, as a decline in transportation equipment offset advances in other categories. The report revised July’s gain in total orders upward to 0.9 percent. Unfilled orders for durable goods rose modestly while inventories edged higher in the latest monthly tally from the agency.
A review by Seeking Alpha of the Census Bureau release pointed to a 1.1 percent month-over-month increase in machinery orders, which climbed 15.1 percent from a year earlier to $45.5 billion. Orders for computer and electronic products showed no change during the month but surged 16.5 percent year-over-year. These segments have benefited from demand tied to data center and technology infrastructure expansion, the analysis found.
Business spending on equipment has now posted two consecutive quarters of double-digit growth, largely driven by investments in artificial intelligence, a Reuters assessment determined. The latest core capital goods figures suggest this trend will extend into the third quarter. Core orders stood 14.1 percent higher than a year ago, according to Federal Reserve Economic Data.
Christopher Rupkey, chief economist at FWDBONDS, said in remarks to Reuters, “The AI investment boom is real and it is carrying the economy along with it.” Rupkey noted that investment spending functions as a growth accelerator but cautioned that the momentum may eventually ease. The August data aligns with coverage in Kuwait Times that highlighted how such orders point to robust growth.
The Census Bureau placed non-defense capital goods orders overall at $100.5 billion in August after a 1.2 percent monthly increase. This followed a 2.3 percent advance in July that was also revised higher. Such patterns underscore sustained momentum in US manufacturing investment amid broader economic conditions.
