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, reinforcing expectations for economic growth despite elevated borrowing costs.

The increase points to continued appetite among businesses for investment, even as financing remains expensive and inflation adds pressure to operating costs.

Spending linked to artificial intelligence is helping underpin that demand, making it a source of support for business activity in a challenging financial environment.

The rise in orders bolsters expectations that the US economy grew 3.2% in the third quarter. That figure remains a forecast rather than a confirmed measure of output.

The outlook highlights the resilience of corporate investment, although higher financing costs and persistent inflation remain constraints on the broader economy.