resh U.S. data points to continued resilience in business equipment spending at the start of Q4, despite tariff pressures and manufacturing headwinds.
According to the U.S. Commerce Department, core capital goods orders — non-defense orders excluding aircraft — rose 0.5% in October, beating expectations and building on an upwardly revised 1.1% gain in September.
More importantly, shipments increased 0.7%, signaling real follow-through into production and near-term GDP.
Why this matters
🔹 Capex momentum remains intact
Business equipment spending grew at a 5.4% annualized rate in Q3, confirming that corporate investment is still a key pillar of U.S. economic growth.
🔹 AI investment is cushioning manufacturing
While tariffs continue to weigh on traditional manufacturing (about 10% of GDP), AI-driven demand is supporting capital-intensive industries.
🔹 Growth backdrop remains strong
The U.S. economy expanded at a 4.3% annualized pace last quarter, accelerating from 3.8% in Q2.
A note of caution
Headline durable goods orders fell 2.2%, largely due to a sharp 32.4% drop in aircraft orders. Boeing reported just 15 new aircraft orders in October, down from 96 in September — a reminder that volatility in big-ticket items can distort top-line data.
Bottom line:
Strip out the noise, and the signal is clear — U.S. businesses are still investing, reinforcing the case for a soft landing supported by productivity-enhancing capital spending.