Orders for business equipment rose sharply in August and earlier gains were revised higher, signaling strengthening investment demand across the U.S. economy.
New orders for nondefense capital goods excluding aircraft, a closely watched indicator of business spending plans, jumped 1.6 percent to $87.6 billion, the Commerce Department said Friday. Economists had expected a 0.5 percent increase.
The advance followed a revised 0.6 percent gain in July, three times the increase initially reported. Together with June’s 1.7 percent rise, the figures show core capital goods orders increased approximately 3.9 percent over three months.
The sustained gains point to a growing pipeline of equipment purchases that could support manufacturing activity in the months ahead. Businesses continued to place larger orders for machinery, computers and electrical equipment, extending an investment expansion that has produced double-digit growth in core capital goods orders so far this year.
Through August, core capital goods orders totaled $665.7 billion, up 10.6 percent from the same period in 2025.
The strength in business equipment contrasted with a flat reading for overall durable goods orders, which include products designed to last at least three years. Total orders held at $338.6 billion as declines in commercial aircraft and motor vehicles offset increases elsewhere.
That headline figure also exceeded expectations. Economists had forecast a 0.4 percent decline. July’s overall increase was revised down to 0.9 percent from an initially reported 1.1 percent.
Machinery orders rose 1.1 percent in August following increases of 1.5 percent in July and 1.3 percent in June. The consecutive gains amount to approximately 4 percent growth over three months, indicating continued demand for equipment used across industrial, agricultural, construction and other businesses.
Orders for primary metals increased 1.2 percent, following gains of 2.1 percent in July and 1.9 percent in June. Electrical equipment, appliances and components recorded a 1.1 percent increase in August.
Computer and related product orders rose 1.5 percent, reversing July’s 0.6 percent decline. Communications equipment orders increased 0.3 percent after advancing 1.8 percent in July.
The year-to-date figures show substantial increases across several equipment categories. Machinery orders were up 13 percent from the first eight months of last year, while computer orders increased 20.1 percent. Communications equipment orders rose 35.8 percent, and primary metals orders increased 15.3 percent.
There were pockets of weakness. Fabricated metal products orders fell 1.3 percent in August. Motor vehicle and parts orders declined 0.6 percent, while commercial aircraft orders—a volatile category dominatd by airline orders from Boeing—dropped 4.3 percent after July’s 12 percent increase. Transportation equipment orders overall fell 0.6 percent.
Excluding transportation, durable goods orders increased 0.3 percent, below expectations for a 0.6 percent gain. But July’s increase in that broader measure was revised upward to 0.7 percent from the initially reported 0.4 percent, leaving a stronger starting point for August.
Orders excluding transportation were up 9.6 percent through the first eight months of the year. Total durable goods orders increased 7.7 percent over that period, despite a 22.1 percent decline in commercial aircraft orders.
The figures are adjusted for seasonal variations but aren’t adjusted for inflation, meaning higher prices can account for part of the increase in order values. Even so, August’s sharp increase in core capital goods orders, coming on top of stronger July figures, points to continued momentum in business equipment investment.
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