U.S. Business Spending Rises as AI Investments Offset Boeing Slump
Core capital goods orders surged 1.1% in July, signaling renewed corporate investment despite a 2.8% drop in volatile durable goods categories. The ex-aircraft metric—a key proxy for business confidence—reflects accelerating shipments of productive equipment, with a 3.3% jump in non-defense capital goods feeding directly into GDP calculations.
Boeing's order slowdown created headline noise, but beneath the turbulence, companies are deploying capital toward AI infrastructure. This strategic pivot manifests in rising orders for computers, machinery, and electrical systems—precisely the hardware stack required for machine learning workloads and tariff-resistant operational upgrades.