Core capital goods orders

U.S. orders for nondefense capital goods excluding aircraft rose 1.6% in August, beating forecasts, while July’s increase was revised up to 0.6%. The data point to resilient business investment, supported in part by spending on AI infrastructure, and add to a run of strong equipment orders that could bolster manufacturing and economic growth. Shipments of core capital goods rose 0.6%, slower than July’s 1.4% gain, while overall durable goods orders were flat as weakness in transportation equipment offset increases elsewhere. Economists cautioned that manufacturing sectors less connected to AI could face headwinds from higher energy costs and interest rates.