Key facts
- Core capital goods orders rose 0.5% in September, up 10.9% year-on-year.
- Shipments of core capital goods increased 1.2% in September, up 8.8% year-on-year.
- Overall durable goods orders rose 1.8% in September, the largest increase in five months.
New orders for key US-manufactured capital goods rose 0.5% in September, and shipments of these products surged 1.2%, indicating that business spending on equipment maintained a strong pace in the third quarter. The gains were driven by demand for AI infrastructure, transportation equipment, and other durable goods. Economists estimate business spending on equipment grew at a roughly 20% annualized rate last quarter. Despite the positive data, concerns persist regarding the substantial costs associated with building out AI infrastructure and potential impacts on electricity prices.