US Core Capital Goods Orders Rise, AI Investment Drives Growth
US core capital goods orders rose more than expected in June, highlighting strong business investment during the first half of the year.
The value of core capital goods orders, excluding aircraft and military equipment, increased by 0.9% in June. The May figure was revised higher to show a 1.9% gain.
Overall durable goods orders rose by 0.3%. This category includes products designed to last at least three years, including commercial aircraft and defense equipment.
US business investment has remained solid this year, supported by spending on artificial intelligence and rising defense orders amid ongoing conflicts. Orders for computers, communications equipment, electrical products, and primary metals also increased.
Major technology companies, including Alphabet, Meta Platforms, Microsoft, and Amazon, previously announced plans to spend as much as US$725 billion on AI development this year.
However, President Donald Trump’s new tariffs and continued tensions in the Middle East are adding uncertainty for businesses. These conditions could increase costs and limit some investment plans in the coming months.
Source : Newsmaker.id
