New orders for key U.S.-made capital goods surged in September, while shipments also posted strong gains. The data reinforced economists’ expectations that U.S. economic growth accelerated in the third quarter.
According to the Commerce Department’s Census Bureau, non-defense capital goods orders excluding aircraft—a major indicator of business investment—rose 0.9%, matching the upwardly revised 0.9% increase recorded in August.
Economists surveyed by Reuters had anticipated a smaller 0.2% rise after the previously reported 0.4% gain in August. The release of the report had been delayed due to the recently concluded 43-day federal government shutdown.
Shipments of core capital goods also climbed 0.9%, rebounding from a 0.1% decline in August. This year, these orders have shown sharp swings as companies reacted to President Donald Trump’s broad import tariffs.
Business surveys indicate that the tariffs have weighed on the manufacturing sector, which makes up 10.2% of the U.S. economy. However, a surge in artificial intelligence investment has provided support for certain areas of manufacturing.
Business spending on equipment grew at a solid pace during the first half of the year, and economists expect that equipment investment remained strong in the third quarter. The Atlanta Federal Reserve currently forecasts 4.0% annualized GDP growth for the July–September period.
The government announced on Tuesday that it will publish the delayed third-quarter GDP report on December 23. The U.S. economy expanded at a 3.8% rate in the second quarter.
Overall durable goods orders, which include long-lasting items from household appliances to aircraft, increased 0.5% in September after rising 3.0% in August.
Orders for non-defense aircraft and parts dropped 6.1%, although Boeing reported 96 aircraft orders in September—up sharply from 26 in August.
