US core capital goods orders and shipments both rebound in October, corporate equipment investments remain resilient.

In October, both core capital goods orders and shipments in the United States rebounded, indicating that business equipment investment remains resilient in the early fourth quarter. According to data released by the U.S. Census Bureau of the Department of Commerce on Tuesday, non-defense capital goods orders excluding aircraft (a key leading indicator of business investment) rose by 0.5% in October from the previous month, with the September increase being revised up to 1.1%. Economists surveyed earlier had expected a 0.4% growth in this indicator for October. Meanwhile, core capital goods shipments rose by 0.7% in October from the previous month, following a significant 1.2% increase in September, indicating that the pace of business equipment purchasing and delivery remains steady. The above report was delayed due to the 43-day shutdown of the U.S. federal government. Import tariffs have hindered the manufacturing sector, which accounts for about 10.1% of the total U.S. economy, but the continued rise in investment in artificial intelligence (AI) is providing support for some industries. According to an independent report from the Bureau of Economic Analysis of the U.S. Department of Commerce, U.S. business equipment spending in the third quarter increased by 5.4% on an annualized basis, although the growth rate was slower than in the first half of the year, it still remains at a healthy level. Meanwhile, the U.S. economy grew at a rate of 4.3% in the third quarter, higher than the 3.8% in the second quarter. Looking at a broader perspective of durable goods orders, durable goods orders in the United States decreased by 2.2% in October from the previous month, compared to a 0.7% increase in September. Among them, non-defense aircraft and parts orders plummeted by 32.4%, becoming a major drag. U.S. aircraft manufacturer Boeing Company (BA.US) disclosed on its official website that it only received orders for 15 new aircraft in October, far below the 96 orders in September.