Demand for capital goods used by businesses and consumers rose in December, the sixth consecutive month of rising orders, reaching a new all-time high.
Orders for durable goods—those meant to last three years or more—rose 0.6 percent, excluding aircraft and defense goods. For the year, orders of these so-called core capital goods are up 3.5 percent, providing a boost to U.S. economic output.
Shipments of core capital goods rose 0.9 percent for the month and are up 2.5 percent for 2025.
Economists look to core capital goods as a signal of underlying demand for U.S. factory products. The category is considered a proxy for business investment.
Orders for civilian aircraft, which tend to be volatile month-to-month due to the giant price tags for airplanes and large fleet orders, fell 24.9 percent in December. Over the course of 2025, however, orders rose 106.2 percent.
Defense capital goods orders jumped 22.1 percent in December and are up 13.2 percent annually. Defense aircraft orders rose 9.5 percent and were up 20.1 percent in 2025.
Orders for raw metals rose 1.7 percent compared with November and 2.5 percent for the year. Fabricated metals products order rose 0.9 percent and were also up 2.5 percent annually. Machinery orders rose 0.3 percent, capping off a strong year in which orders rose five percent.
Orders for computers and electronic products rose three percent in December and were up 4.2 percent last year. Appliances and electrical equipment orders rose 0.6 percent, bringing the annual gain to 5.1 percent.
Motor vehicle orders, which have waivered this year, rose by a strong 1.2 percent in December and were up 1.4 percent for the year.
Total orders fell 1.4 percent, largely due to the decline of civilian aircraft orders. That was better than the two percent decline forecast by economists. For the year, however, they are up 7.8 percent.
The report was delayed due to the recent government shutdown.
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