US Business Investment Supports Growth Despite Higher Financing Costs

US capital goods orders rose 0.5% in September, as a surge in artificial intelligence investment supported business spending despite elevated financing costs.

The increase points to continued demand for capital equipment, with companies maintaining investment even as borrowing remains expensive.

AI-related spending has provided a source of momentum for the economy, helping to counter the constraints posed by higher funding costs and inflation pressures.

The rise in orders reinforces expectations for economic growth of 3.2% in the third quarter, with business investment supporting the outlook.

Still, financing costs and persistent price pressures remain challenges. The strength of corporate spending suggests those obstacles have not yet halted investment growth.