Live Updates > Live Update Details
2026-02-18 21:42:14
[US Core Capital Goods Orders and Shipments Exceed Expectations in December, Business Equipment Investment Remains Resilient] ⑴ Data released by the US Commerce Department on Wednesday showed that core capital goods orders (excluding aircraft and non-defense capital goods orders) rose 0.6% month-over-month in December, exceeding market expectations of 0.4%, with the November figure revised upward to 0.8%. Core capital goods shipments surged 0.9% month-over-month, from 0.2% previously. ⑵ This data, delayed due to last year's government shutdown, provides a key reference for Friday's preliminary fourth-quarter GDP report. The better-than-expected growth in both orders and shipments reinforces economists' assessment that business equipment investment will remain robust in the fourth quarter. ⑶ Business equipment investment is benefiting from the artificial intelligence investment boom, with strong demand for data center construction. However, import tariffs are suppressing non-AI-related manufacturing. Economists expect a broad recovery in manufacturing this year as some tariff uncertainties subside and tax cuts take effect. ⑷ The market expects fourth-quarter GDP annualized growth of 3.0%, compared to 4.4% in the third quarter. The strong performance of core capital goods data provides strong support for the fourth consecutive quarter of growth in equipment investment.
