- US core capital goods orders increased 0.9% in June, exceeding economists' expectations of 0.8%.
- Shipments of core capital goods surged 1.9% in June after gaining 0.2% in May.
- US orders for business equipment rose in June by more than projected, capping robust capital investment across the first half of the year.
- Economists polled by Reuters had forecast these so-called core capital goods orders advancing 0.8% after a previously reported 1.4% jump in May.
- New orders for key U.S.-manufactured capital goods increased strongly in June while shipments surged, indicating a solid pace of economic growth in the second quarter.
- Non-defense capital goods orders excluding aircraft rose 0.9% last month after an upwardly revised 1.9% increase in May.
- A Reuters survey of economists estimated the economy grew at a 2.1% annualized rate last quarter, matching the January-March quarter's pace.
US core capital goods orders increased by 0.9% in June, exceeding economists' expectations of 0.8%. This rise follows an upwardly revised 1.9% gain in May, indicating strong capital investment trends in the first half of the year.1
The Commerce Department reported that new orders for key U.S.-manufactured capital goods rose significantly, while shipments surged 1.9%, reflecting a solid pace of economic growth in the second quarter.5
Non-defense capital goods orders, excluding aircraft, are a closely watched proxy for business spending, and they rose 0.9% last month. This follows a previously reported 1.4% jump in May, showcasing a robust investment climate.6
A Reuters survey estimated that the economy grew at a 2.1% annualized rate last quarter, matching the pace of the January-March quarter.
The strong performance in capital goods orders and shipments suggests that businesses are investing in equipment, which is crucial for sustained economic growth.
“The increase in core capital goods orders follows a revised 1.9% gain in May, indicating strong business investment. Additionally, shipments of these goods surged 1.9% last month, contributing to a solid economic growth pace of 2.1% annualized in the second quarter.”
