U.S. capital goods orders surge 0.9% in September helped by AI investment

Indicator of corporate spending reflecting expanded investment in some areas such as AI

New orders for U.S. capital goods surged in September, and shipments of those goods also continued to rise.

On the 26th (local time), the U.S. Department of Commerce's Census Bureau released September capital goods orders data, saying new orders for nondefense capital goods excluding aircraft increased 0.9% in September. August data was also revised up to a 0.9% increase. Core capital goods orders surged 0.9% after a 0.1% decline in August. Orders for nondefense capital goods are considered an indicator of corporate spending.

Economists had expected core capital goods orders to increase 0.2% in September. The release was delayed by a 43-day U.S. government shutdown.

The rise in capital goods orders is interpreted as companies increasing orders in response to the imposition of import tariffs. According to business surveys, tariffs have had an overall adverse effect on U.S. manufacturing, but some manufacturing sectors have been revitalized by a surge in investment related to artificial intelligence (AI).

With firms' equipment spending increasing at a solid pace, economists estimated it would have a positive effect on third-quarter domestic economic growth. The Federal Reserve Bank of Atlanta projected GDP for the July-September quarter would increase at a 4.0% annualized rate.

The Commerce Department said it would release the delayed third-quarter GDP report on December 23. The U.S. economy grew at a 3.8% pace in the second quarter.

Orders for durable goods expected to last three years or more, from toasters to aircraft, rose 0.5% in September after increasing 3.0% in August. Orders for civilian aircraft and parts fell 6.1%.

Contributing reporter Kim Jeong-ah kja@hankyung.com