American businesses ramped up spending on equipment again in August, and the Commerce Department revised July’s figures higher as well, adding fresh evidence that companies are investing at a rapid clip this year.
New orders for nondefense capital goods excluding aircraft — a core measure economists watch closely because it reflects business investment plans — rose 1.6 percent to $87.6 billion, the government reported Friday. That easily topped forecasts calling for a 0.5 percent increase.
July’s gain was also revised up sharply, to 0.6 percent from an initially reported 0.2 percent. Combined with a 1.7 percent increase in June, core capital goods orders have climbed roughly 3.9 percent over the past three months.
Through August, core capital goods orders totaled $665.7 billion for the year, up 10.6 percent from the same period in 2025.
The gains came even as overall durable goods orders — which cover products built to last at least three years — were flat for the month at $338.6 billion. Declines in commercial aircraft and motor vehicles offset gains elsewhere in the economy, but the flat reading still beat expectations of a 0.4 percent drop. July’s total durable goods figure was revised down slightly, to 0.9 percent growth from the originally reported 1.1 percent.
Machinery, Metals, and Tech Lead the Way
Machinery orders rose 1.1 percent in August after climbing 1.5 percent in July and 1.3 percent in June — about 4 percent growth over three months for equipment used across industry, agriculture, and construction.
Primary metals orders increased 1.2 percent, building on gains of 2.1 percent in July and 1.9 percent in June. Electrical equipment, appliances, and components rose 1.1 percent. Computer and related product orders jumped 1.5 percent, bouncing back from a 0.6 percent decline in July, while communications equipment orders rose 0.3 percent after an 1.8 percent gain the month before.
Year to date, the increases in some categories are striking: machinery orders are up 13 percent from the same period last year, computer orders are up 20.1 percent, communications equipment orders are up 35.8 percent, and primary metals orders are up 15.3 percent.
Aircraft and Autos Drag on the Headline Number
Not every category is rising. Fabricated metal products orders fell 1.3 percent in August, and motor vehicle and parts orders slipped 0.6 percent. Commercial aircraft orders — a volatile category driven largely by Boeing’s order book — dropped 4.3 percent after surging 12 percent in July. Transportation equipment orders overall fell 0.6 percent for the month.
Stripping out transportation, durable goods orders rose 0.3 percent in August, below the 0.6 percent economists expected. But July’s figure in that category was revised up to 0.7 percent growth from an initially reported 0.4 percent, meaning August built on a stronger base than first thought.
For the year so far, durable goods orders excluding transportation are up 9.6 percent, and total durable goods orders are up 7.7 percent despite a 22.1 percent slide in commercial aircraft orders.
The figures are adjusted for seasonal patterns but not for inflation, so part of the dollar increase reflects higher prices rather than more units ordered. Still, back-to-back months of upward revisions and stronger-than-expected core orders suggest business investment has real momentum heading into the fall.
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