Updated
Updated · yardeniquicktakes.com · Jul 28
US Core Capital Goods Orders Rise 12.5% as Computer Backlog Hits Record $157.4 Billion
Updated
Updated · yardeniquicktakes.com · Jul 28

US Core Capital Goods Orders Rise 12.5% as Computer Backlog Hits Record $157.4 Billion

3 articles · Updated · yardeniquicktakes.com · Jul 28

Summary

  • Core capital-goods orders climbed 0.9% in June and 12.5% from a year earlier, the strongest annual gain since November 2021, pointing to a sharp pickup in US business investment.
  • Unfilled orders for computers and electronic products reached a record $157.4 billion, underscoring heavy demand for AI infrastructure such as servers, semiconductors and networking gear.
  • Broader durable-goods data also improved, with total orders up 0.3% and orders excluding transportation rising 0.6%, while machinery tied to data-center operations remained especially strong.
  • Hundreds of billions of dollars in AI capital spending are increasingly lifting manufacturers and industrial suppliers, helping make S&P 500 Industrials the market's second-best-performing sector with a 17.7% year-to-date gain.

Insights

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Could an underlying collapse in aerospace orders be masking true economic resilience, altering the Federal Reserve's next interest rate move?