--- title: "US Core Capital Goods Orders Grow Beyond Expectations, AI Spending Boom Supports First-Half Investment" type: "News" locale: "en" url: "https://longbridge.com/en/news/293937293.md" description: "June core capital goods orders (excluding aircraft and military equipment) rose 0.9% month-over-month, exceeding economists' expectations of 0.7%, while May's data was revised up to a 1.9% increase. Core capital goods shipments surged 1.9% month-over-month during the same period, far surpassing the expected 0.6%, further confirming the strength of actual investment activity" datetime: "2026-07-27T13:05:10.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293937293.md) - [en](https://longbridge.com/en/news/293937293.md) - [zh-HK](https://longbridge.com/zh-HK/news/293937293.md) --- # US Core Capital Goods Orders Grow Beyond Expectations, AI Spending Boom Supports First-Half Investment # US Corporate Equipment Investment Maintains Strong Momentum in First Half of 2025; June Core Capital Goods Orders Exceed Market Expectations, Highlighting Sustained Pull from AI Wave and Defense Spending on Manufacturing Demand According to data released by the US Department of Commerce on Monday, **June core capital goods orders (excluding aircraft and military equipment) rose 0.9% month-over-month, higher than the 0.7% expected by economists, while May's data was revised up to a 1.9% increase. Core capital goods shipments surged 1.9% month-over-month during the same period, far exceeding the expected 0.6%, further confirming the strength of actual investment activity.** The direct implication of this data for the market is that the resilience of corporate Capex provides strong evidence of economic prosperity. However, uncertainties stemming from the Trump administration's new tariff policies, along with ongoing geopolitical tensions in the Middle East, remain potential headwinds for future investment prospects. ## AI Arms Race Drives Equipment Demand In this Durable Goods Orders report, orders for computers, communication equipment, and electrical equipment all recorded growth, while orders for primary metals also rebounded. This aligns closely with the trend of tech giants continuously increasing their investments in AI infrastructure. In April this year, Google, Meta Platforms, Microsoft, and Amazon sequentially signaled plans to invest a combined total of up to $725 billion in AI-related spending this year. This massive Capex plan has become one of the core drivers boosting corporate equipment orders and is expected to continue supporting overall investment levels in the coming months. Defense-related spending is also an important pillar of investment in the first half of the year. Influenced by intensifying global geopolitical games, US defense orders have shown war-driven growth, offsetting some of the volatility in civilian investment. ## Overall Durable Goods Data Slightly Misses Expectations From a broader perspective, total durable goods orders for June (covering commercial aircraft and military equipment, referring to products with a designed service life of at least three years) increased by only 0.3% month-over-month, significantly lower than the market expectation of 1.8%. This indicates that demand in sectors other than aviation and defense is relatively moderate. The core capital goods indicator attracts significant attention from investors precisely because it excludes large-ticket and highly volatile order items such as aircraft, allowing for a more accurate reflection of trends in routine corporate capital investment. From this perspective, June's data, together with the revised May data, paints a picture of overall robust corporate investment in the first half of 2025. ## Tariffs and Geopolitical Risks Pose Downside Concerns Despite the impressive performance in the first half of the year, the outlook still faces non-negligible uncertainties. The new round of tariff measures implemented by the Trump administration, coupled with ongoing tensions in the Middle East, is exacerbating corporate decision-making concerns. This may not only drive up input prices but also prompt some companies to delay or scale back investment plans. For investors, the key question now is whether the AI-driven Capex boom can continue to offset the negative impacts brought about by trade policy uncertainty. Subsequent data from the Department of Commerce will serve as an important window to observe whether this balance tips. ### Related Stocks - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) ## Related News & Research - [AI's new North Star: Intelligence per dollar](https://longbridge.com/en/news/293823098.md) - [The AI Hangover Has Arrived](https://longbridge.com/en/news/294191198.md) - [AI is quietly becoming an unofficial and potentially unwanted 'third' in relationships](https://longbridge.com/en/news/293839765.md) - [AI investing genius Leopold Aschenbrenner owns 20% of this AI stock. 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