AI Investment Boom Drives U.S. Business Equipment Spending to Six-Year High

The artificial intelligence boom has spread from software services to chips, servers, networking equipment and data-center construction, boosting corporate fixed investment. Core capital goods orders, tracked by the U.S. Commerce Department, exclude volatile categories such as defense equipment and aircraft. They are a key leading indicator of business equipment spending and future manufacturing activity.

The Commerce Department’s latest March data showed core capital goods orders surged 3.3% from the previous month, far exceeding market expectations and posting their largest increase in six years. The report attributed the growth primarily to increased corporate spending on AI products and the data centers needed to support computing demand. Available information did not disclose the total value of the orders or the exact release date.