Companies are still loading up on equipment
The willingness of businesses to invest in themselves shows no sign of slowing.
Driving the news: Core capital goods orders rose 0.8% in September, beating economist expectations for growth of around 0.4%, government data out yesterday show.
Why it matters: It's a key measure of business spending on equipment, and strength here shows companies' willingness to invest in the future.
- September's rise is the biggest monthly increase since June.
The bottom line: The latest release “is consistent with our view that business capex will be much stronger over the next few years than during the previous economic cycle, boosting productivity growth,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, wrote in a research note.