Business Investment Supports US Growth Despite Higher Financing Costs

US capital goods orders rose 0.5% in September, supported by a surge in artificial intelligence investment as businesses continued spending despite higher financing costs.

The increase points to resilience in corporate investment, with AI-related spending providing support for economic activity amid persistent inflation pressures.

The orders data reinforce expectations for US economic growth of 3.2% in the third quarter. Business investment remains a source of momentum even as costly financing weighs on spending decisions.

The outlook nevertheless reflects competing forces: expanding investment in AI is helping sustain growth, while inflation and borrowing costs continue to pose challenges for businesses.