U.S. Core Capital Goods Orders Surge Despite Boeing Decline

U.S. core capital goods orders rose 1.1% in July, surpassing expectations, while core capital goods shipments increased 0.7%. However, durable goods orders fell 2.8% due to a decline in commercial aircraft orders. Boeing reported only 31 aircraft orders in July, down from 116 in June, challenging expectations of increased orders this year. Economists suggest the earlier surge in aircraft orders was due to "future orders being fulfilled early."

In July 2025, U.S. core capital goods orders, a closely watched measure of business investment, rose by 1.1%, surpassing economist expectations [1]. This increase follows a revised 0.6% decline in June and signals a strong start for business spending on equipment in the third quarter. Core capital goods shipments also rose by 0.7%, building on a 0.4% increase the previous month [1].

However, durable goods orders, which include items designed to last three years or more, fell by 2.8% in July, primarily due to a decline in commercial aircraft orders [2]. Boeing reported receiving only 31 aircraft orders in July, down from 116 in June, challenging expectations of increased orders this year [2]. Economists suggest that the earlier surge in aircraft orders was due to "future orders being fulfilled early" [1].

The drop in durable goods orders was led by transportation equipment, with a steep 9.7% decline driven by Boeing’s weak results [3]. Despite this, non-transportation orders across the economy grew by 1.1%, marking the best monthly gain since early spring. This indicates that business investment remains robust in sectors other than transportation [3].

Analysts attribute the increase in core capital goods orders and shipments to businesses bringing in goods ahead of anticipated import duties. The front-loading effect has been easing, but businesses continue to invest in equipment [1]. The construction of factory buildings has been running at over triple the pre-pandemic rate, reflecting ongoing investment in manufacturing [2].

Overall, the data suggests that while there are fluctuations in durable goods orders, particularly in the transportation sector, the broader trend of business investment remains positive. This resilience supports confidence in the U.S. economy and helps mitigate fears of a steeper slowdown [3].

References:
[1] https://news.az/news/us-core-capital-goods-orders-and-shipments-surge-in-july
[2] https://wolfstreet.com/2025/08/26/manufacturing-of-durable-goods-on-rebound-in-the-us/
[3] https://finimize.com/content/us-durable-goods-orders-dip-on-weak-boeing-demand