U.S. core capital goods orders increased 0.9 percent last month, reflecting continued strength in business investment as companies expand spending on artificial intelligence and technology infrastructure.
According to the report, the gain followed an upwardly revised 1.9 percent increase in May, highlighting sustained demand for business equipment.
The report said investment in AI-related technologies continued to drive growth, with orders for computers and electronic products rising 3.1 percent and electrical equipment increasing 0.9 percent.
While machinery orders edged down 0.1 percent and demand for motor vehicles declined 0.6 percent, economists said robust corporate capital expenditure continues to support economic activity.
According to the report, businesses remain confident about future investment despite geopolitical tensions in the Middle East and higher energy prices.
Fiscal incentives introduced last year are also continuing to encourage capital investment, reinforcing expectations that business spending will remain a key driver of U.S. economic growth.
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AI spending boosts US core capital goods orders, shipments in June https://t.co/qC1HONGFvp
— The Straits Times (@straits_times) July 27, 2026
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