Key facts
- New orders for U.S.-manufactured non-defense capital goods excluding aircraft increased by 0.9% in June.
- Shipments of core capital goods rose 1.9% in June.
- The increase in orders surpassed economists' forecast of a 0.8% rise.
New orders for U.S.-manufactured non-defense capital goods excluding aircraft rose 0.9% in June, surpassing economists' forecasts. Shipments of these core goods increased 1.9%, the largest gain in 4-1/2 years, driven by business investment in artificial intelligence.

The strong performance in core capital goods orders and shipments suggests robust business investment, a key component of economic growth, potentially indicating resilience despite global economic headwinds.
New orders for key U.S.-manufactured capital goods increased strongly in June, with a 0.9% rise in non-defense capital goods orders excluding aircraft. This closely watched proxy for business spending surpassed economists' expectations of a 0.8% advance and followed an upwardly revised 1.9% increase in May. Shipments of these core capital goods also saw a significant surge, climbing 1.9% in June after a 0.2% gain in May. This data points to a fairly solid pace of economic growth in the second quarter, with economists estimating a 2.1% annualized rate. The increase in business investment is partly attributed to companies ramping up spending on artificial intelligence, which is fueling demand for information processing equipment and related products.