U.S. capital goods orders strengthened in June as businesses increased spending on computers, electronic products, and electrical equipment. The latest federal data shows where demand is building, why shipments matter for economic growth, and which manufacturing categories remain uneven despite stronger technology-related activity.
Key Takeaways
- Core capital goods orders rose 0.9% in June after a revised 1.9% increase in May.
- Shipments increased 1.9%, the largest monthly gain since December 2021.
- Orders for computers and electronic products climbed 3.1% to $31.1 billion.
- Machinery and fabricated metal orders weakened, showing that the gains did not extend across every manufacturing category.
Core capital goods orders rose more than expected in June as demand for technology and electrical equipment supported U.S. manufacturing activity.
New orders for nondefense capital goods excluding aircraft increased 0.9%, according to data released by the U.S. Census Bureau on July 27, 2026. The category is closely watched because it measures company spending on equipment without the monthly volatility associated with aircraft and military purchases.
The May increase was revised to 1.9% from the previously reported 1.4%. Economists surveyed by Reuters had expected a 0.8% June gain. Orders were 9.3% higher than a year earlier.
AI Spending Lifts Core Capital Goods Demand
Computers and electronic products provided the clearest source of strength. Orders rose 3.1% in June to $31.1 billion and increased in nine of the previous 10 months, the Census Bureau reported.
Electrical equipment, appliances, and components orders increased 0.9%. Primary metals rose 1.1%, extending the gains into materials and systems used across data centers, power networks, and industrial facilities.
The pattern is consistent with expanding demand for servers, memory, networking hardware, cooling systems, and electrical components associated with artificial intelligence infrastructure. It does not mean every order in those categories was connected to AI because federal manufacturing data does not separate AI-specific purchases.
Federal Reserve researchers made a similar distinction in a July 17 analysis. They found that the economic effects of AI remained concentrated in areas such as software, data centers, and information technology equipment, while evidence of broad changes in productivity and employment remained limited.
The expansion also brings operating pressures. Rising computing demand has contributed to higher power requirements in several regions, creating additional attention around AI data center electricity costs for manufacturers and other large energy users.
Shipments Strengthen the Growth Signal
The shipment data delivered the report’s strongest near-term economic signal. Core capital goods shipments rose 1.9% in June after a 0.2% increase in May, marking the largest monthly advance since December 2021.
Shipments matter because they enter the government’s calculation of equipment spending in gross domestic product. A completed shipment also shows that machinery or technology has moved beyond the order stage and reached the customer.
Computers and electronic products and machinery led the increase. Shipments of electrical equipment, appliances, and components also recorded solid gains, along with primary metals.
The stronger reading suggests equipment spending remained active near the end of the second quarter. It also supports demand across suppliers that produce chips, optical systems, power-management components, and industrial electronics.
Recent semiconductor manufacturing demand provides additional context for how AI infrastructure requirements are reaching beyond the largest processor makers.
Nondefense capital goods shipments, including aircraft, increased 1.5%. Overall durable goods shipments rose 0.7% after increasing 1.1% in May.
Manufacturing Gains Remain Uneven
The headline improvement did not extend across all manufacturing categories. Machinery orders slipped 0.1%, while fabricated metal product orders fell 0.5%.
Transportation equipment orders declined 0.2%, including a 0.6% drop in motor vehicles and parts. Civilian aircraft orders rose 3.7%, but aircraft data can move sharply between months because individual orders carry high values.
Total durable goods orders increased 0.3% to $334.8 billion after falling 4.0% in May. Excluding transportation, orders rose 0.6%. Excluding defense, they increased 0.3%.
The mixed category results show that technology-related demand is supporting factory activity without producing a uniform expansion. Companies tied to computing and electrical infrastructure are seeing stronger order patterns, while other producers continue to face slower bookings and uncertain demand.
Costs are another factor. Federal Reserve researchers have noted that the data-center buildout is affecting selected areas of the economy, including software, construction, information technology equipment, and power infrastructure. Those pressures may support suppliers while also increasing equipment and project expenses.
For business leaders, the June report offers a more precise view of the current manufacturing cycle. Capital goods tied to computing, electronics, and power systems are gaining momentum, but machinery, fabricated metals, and vehicles remain less consistent.
The next full manufacturing report will add detail on inventories, unfilled orders, and final shipments. The June figures already indicate that capital goods spending linked to digital infrastructure has become an important source of equipment demand, even as the wider industrial sector produces mixed results.
Frequently Asked Questions
What Are Core Capital Goods Orders?
Core capital goods orders measure new orders for nondefense capital goods excluding aircraft. Economists use the category to assess company equipment spending without the volatility associated with aircraft and military purchases.
How Much Did Core Capital Goods Orders Rise in June?
Core capital goods orders increased 0.9% in June 2026 after a revised 1.9% gain in May. The June result was slightly above the 0.8% increase expected by economists surveyed by Reuters.
Why Did Computers and Electronics Matter?
Orders for computers and electronic products rose 3.1% to $31.1 billion. The increase helped offset weaker orders in machinery, fabricated metals, and transportation equipment.
Why Are Capital Goods Shipments Important?
Shipments show that ordered equipment has reached customers and can enter business operations. Core shipments also feed into the equipment-spending component of gross domestic product.
Did Every Manufacturing Category Grow?
No. Machinery orders declined 0.1%, fabricated metal product orders fell 0.5%, and transportation equipment orders slipped 0.2%. The report showed concentrated strength rather than a broad increase across manufacturing.
