U.S. Business Investment Accelerates as Core Capital Goods Orders Beat Forecasts

New orders for key U.S.-manufactured capital goods rose more than expected in November, signaling that business spending on equipment remained resilient heading into the final quarter of the year.

Orders for non-defense capital goods excluding aircraft—a widely followed gauge of business investment—increased by 0.7% in November, following a downwardly revised 0.3% rise in October, according to data from the Commerce Department. Economists had expected a more modest 0.3% gain.

Shipments of these core capital goods, which feed directly into gross domestic product calculations, climbed 0.4% after advancing 0.8% in October, pointing to continued momentum in equipment spending.

The data, delayed by a prolonged federal government shutdown, aligns with recent indicators of economic strength. Earlier reports showed robust consumer spending in October and November, while the Atlanta Federal Reserve currently projects the U.S. economy to grow at a 5.4% annualized pace in the fourth quarter.

Economic growth reached 4.4% in the July–September period—the fastest pace in three years—driven by strong household demand, a narrower trade deficit, and a solid contribution from business investment in equipment.