US CORE CAPITAL GOODS ORDERS POINT TO ROBUST GROWTH IN BUSINESS SPENDING ON EQUIPMENT
New orders for key US-manufactured capital goods increased more than expected in August and data for the prior month was revised sharply higher, pointing to another quarter of robust growth in business spending on equipment amid an artificial intelligence infrastructure buildout.
The upbeat report from the Commerce Department on Friday followed on the heels of a survey this week from S&P Global showing an acceleration in business activity in September. But concerns are emerging over the sustainability of the AI-related demand. Some industry leaders have called for regulation of the technology. There are also worries that rising oil prices, interest rates and long-term US Treasury yields because of the Middle East conflict will hurt manufacturing not tied to AI.
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