By PYMNTS | October 27, 2026
Demand for artificial intelligence infrastructure, business equipment and transportation equipment drove an increase in durable goods orders in September, according to data released Tuesday (Oct. 27) by the Census Bureau.
New orders for nondefense capital goods, excluding aircraft, increased by 0.5% in September, according to the Census Bureau’s data on durable goods manufacturers’ shipments and new orders.
This metric, known as “core capital goods,” is widely seen as a barometer of business investment, PYMNTS reported in April.
Overall, new orders for durable goods increased 1.8% in September, marking the sixth out of the last seven months in which these orders increased, the Census Bureau said in a Tuesday press release.
Transportation equipment saw the biggest increase, rising 4.6% in September. This category has increased in two of the last three months, according to the release.
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The AI boom drove the increase in core capital goods, Reuters reported Tuesday. Business spending on equipment remains robust, despite concerns about the cost of the AI infrastructure buildout.
Together with the 0.5% month-over-month increase in core capital goods, there was a 10.9% year-over-year increase in the category, per the report.
The 1.8% rise in orders for durable goods was the largest increase in five months, Bloomberg reported Tuesday. The growth in this category was driven by orders for commercial aircraft, which were up 28.4%, as well as computers, machinery and motor vehicles.
The Census Bureau report also suggested that spending related to AI continued to lead business investment, as it has all year, per the Bloomberg report.
“AI-related investment continued to power capital spending through the quarter,” Bloomberg Economist Eliza Winger said in the report. “Looking ahead, some firms indicated their investment plans hinge on the outcome of the midterm elections and the path of Fed policy.”
Transportation equipment again led the way in growth of total orders for durable goods, as the category was up 4.6%, The Wall Street Journal reported Tuesday.
Citi Wealth said in a report released Oct. 7 that the AI buildout is still in its early-to-middle stages, PYMNTS reported at the time. Despite the “growing noise” around the AI buildout, other signals remain strong, including semiconductor demand, U.S. core capital goods orders and AI-related exports.
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