New data released by the Commerce Department’s Census Bureau indicates a robust uptick in U.S.-manufactured capital goods orders for January, suggesting a renewed vigor in business expenditure on equipment. This rebound, detailed in a Reuters report, highlights a 0.8% increase in non-defense capital goods orders excluding aircraft, compared to economist predictions of a 0.3% rise and a revised 0.2% uptick in December.
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IndexBox data further reveals that while shipments of these core capital goods decreased by 0.3% following a 0.3% rise in the previous month, non-defense capital goods orders showed a substantial rebound of 12.9%, reversing a 5.3% fall in December. The uptick in shipments, which went up by 3.2% after a 3.8% increase in the prior month, is influential in the economic assessment of business investment in equipment.
Overall, these figures signal a shift from the fourth quarter’s sluggish economic growth influenced by business equipment spending. As businesses continue to show increased activity in capital investments, projections for economic performance in the coming quarters may see adjustments reflecting this positive trend.
