US Core Capital Goods Orders Rise 0.6% in December, Shipments Up 0.9%
New orders for US manufactured capital goods increased by 0.6% in December, following a revised 0.8% rise in November. Shipments surged 0.9%, indicating strong business spending on equipment. The data, impacted by an AI investment boom, points to a solid economic growth forecast for the fourth quarter, with expectations of a 3% annualized growth rate. Durable goods orders decreased 1.4%, primarily due to a drop in non-defense aircraft orders. Overall housing starts increased by 6.2% in December, reaching a rate of 1.404 million units.
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Core capital goods orders in the US rose 0.6% in December, following a 0.8% increase in November, according to the Commerce Department. Shipments of these goods surged 0.9%. The growth reflects strong business spending, bolstered by an artificial intelligence investment boom.
Economists forecast a 3% annualized growth rate for the fourth quarter. However, durable goods orders fell 1.4% due to a significant decline in non-defense aircraft orders. In the housing sector, overall starts increased 6.2% to 1.404 million units, with single-family housing starts rising 4.1%. The economic outlook remains optimistic despite challenges from tariffs and rising construction costs.
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