{
  "id": 10146872,
  "title": "US core capital goods orders point to robust growth in business spending on equipment",
  "url": "https://urgent.news/2026/09/27/us-core-capital-goods-orders-point-to-robust-growth-in-business",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-27T05:29:47.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/economy/2026/09/1542145/us-core-capital-goods-orders-point-robust-growth-business-spending"
  },
  "original_language": "en",
  "account": "New orders for key U.S.-manufactured capital goods surged in August, with data for the previous month revised significantly upward, indicating continued robust growth in business spending on equipment driven by an artificial intelligence infrastructure buildout. The Commerce Department's report on Friday followed an S&P Global survey showing a September business activity acceleration. However, concerns about the sustainability of AI-related demand arose, as some industry leaders called for technology regulation and worries about rising oil prices, interest rates, and long-term U.S. Treasury yields due to the Middle East conflict affecting non-AI manufacturing.\n\nChristopher Rupkey, chief economist at FWDBONDS, stated that AI investment is real and propelling the economy. Core capital goods orders, excluding aircraft, increased 1.6% last month after a revised 0.6% rise in July. Economists had predicted these core capital goods orders to rise 0.5% after an unchanged reading in July. Year-on-year, core capital goods orders jumped 10.6% in August, primarily led by a 1.1% rebound in electrical equipment, appliances, and components orders. Computer and electronic product orders remained unchanged, but individual components showed strength, with computer-related orders soaring 1.5% and communications equipment rising 35.8%. Machinery orders grew 1.1%, while primary metals bookings increased 1.2%. Orders for fabricated metal products declined 1.3%.\n\nBusiness spending on equipment benefited from last year's tax incentives and firms front-loading orders to avoid higher import tariffs and Middle East conflict-related costs. However, some economists noted signs of slowing capital spending, citing a moderation in regional Federal Reserve manufacturing surveys' capital expenditure plans. Veronica Clark, an economist at Citigroup, cautioned that growth could slow as activity and spending levels are already high. Shipments of core capital goods, affecting GDP calculation, rose 0.6% last month after advancing 1.4% in July, while overall non-defence capital goods orders climbed 1.2%, though shipments fell 1.3% after prior month gains. Business spending on equipment experienced two consecutive quarters of double-digit growth, with JP Morgan and Goldman Sachs forecasting this trend to continue into the third quarter. Goldman Sachs upgraded its GDP growth estimate for the July-September quarter to a 3.4% annualized rate. The U.S. economy grew at a 1.5% rate in the second quarter.",
  "summary": "WASHINGTON: New orders for key US-manufactured capital goods increased more than expected in August and data for the prior month was revised sharply higher, pointing to another quarter of robust growth in business spending on equipment amid an artificial intelligence infrastructure buildout.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}