Overview
- The Census Bureau reported on Oct. 27 that total durable goods orders rose 1.8% in September, driven mainly by a jump in transportation bookings and a large monthly surge in commercial aircraft orders.
- A closely watched proxy for business investment—nondefense capital goods orders excluding aircraft—increased 0.5% in September after a stronger August, indicating businesses continue to commit to equipment spending.
- Shipments of core capital goods, which feed directly into the equipment component of GDP, accelerated 1.2% in September and should support a stronger third-quarter GDP reading.
- Analysts and multiple reports attribute much of the underlying strength to heavy investment in AI infrastructure such as servers and data‑center equipment, while cautioning that aircraft and defense orders make the headline volatile and subject to revision.
- The report also showed unfilled orders and computer-equipment bookings remaining elevated, a pattern that could sustain factory activity but also raises questions about rising project costs and long delivery timelines for AI buildouts.