U.S. durable goods orders rise 1.8% in September

New orders for U.S. manufactured durable goods increased by 1.8% in September, exceeding economist expectations of a 1.4% rise. This growth was primarily driven by a 4.6% surge in transportation equipment orders, fueled largely by a 28.4% jump in non-defense aircraft and parts.

Core capital goods, a key indicator of business investment, rose by 0.5% in September. This category saw a 10.9% increase year-over-year. Analysts noted that demand for artificial intelligence infrastructure and a global defense buildup continue to drive robust business spending on machinery, computers, and electronic products.

While transportation and AI-related sectors showed strength, orders for electrical equipment, appliances, and components experienced a decline during the same period.