U.S. August core capital goods orders rose 1.6%, beating expectations, adding further support to third-quarter GDP.

U.S. business equipment orders rose more than expected in August, extending this year's strong momentum in capital investment. Data released by the Commerce Department on Friday showed that core capital goods ordersa proxy for equipment investment, excluding aircraft and military hardwareincreased 1.6% from a month earlier, while July's figure was revised up to a 0.6% gain. Bookings for all durable goods, defined as items meant to last at least three years and including commercial aircraft and military equipment orders, were little changed. Boeing reported that its orders decreased in August from the prior month. The durable goods report showed orders increased for primary metals, machinery, computers and electrical equipment. Transportation equipment orders declined, weighed down by fewer orders for motor vehicles and commercial aircraft. Capital investment and demand have remained strong this year, led by AI-related spending. In the first half, U.S. business equipment spending contributed solidly to GDP. Before the durable goods report was released, the Atlanta Fed's GDPNow forecast model projected that business equipment spending would contribute nearly 1 percentage point to third-quarter growth. Combined with healthy consumer spending, the data lay the groundwork for another quarter of robust economic growth.