US Core Capital Goods Orders Rise 1.1% in July.
US core capital goods orders and shipments jump in July
New orders for U.S.-made capital goods rose more than anticipated in July, signaling that business investment in equipment started the third quarter on solid footing.
According to the Commerce Department’s Census Bureau, non-defense capital goods orders excluding aircraft—a key measure of business spending—jumped 1.1% in July after a revised 0.6% drop in June. Economists surveyed by Reuters had expected only a 0.2% rebound after June’s previously reported 0.8% decline. Part of the gain may reflect higher prices rather than stronger demand, as tariffs on imports continue to raise manufacturing costs.
Shipments of core capital goods climbed 0.7% in July, building on June’s 0.4% increase. This measure has shown wide swings throughout the year, spiking earlier as companies rushed to beat tariffs imposed under President Donald Trump, then easing once the stockpiling slowed.
Business spending on equipment cooled in the second quarter after double-digit growth in the first. Meanwhile, overall durable goods orders—covering long-lasting items from household appliances to aircraft—fell 2.8% in July, weighed down by fewer commercial aircraft bookings, following a sharp 9.4% decline in June.
