US core capital goods orders rise 0.5% in September, shipments surge

Key facts

• Core capital goods orders rose 0.5% in September.
• Shipments of core capital goods increased 1.2% in September.
• Business spending on equipment has seen two straight quarters of double-digit growth.

New orders for key US-manufactured capital goods increased in September, and shipments of these products surged, suggesting business spending on equipment maintained a robust growth pace in the third quarter. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, rose 0.5% last month after an unrevised 1.6% jump in August. Shipments of core capital goods, which go into the calculation of the business spending on equipment component in the gross domestic product report, vaulted 1.2% last month after gaining 0.6% in August. Business spending on equipment has experienced two straight quarters of double-digit growth, largely fueled by aggressive investment in AI, helping to underpin manufacturing and the overall economy.