U.S. Manufacturing Gets a Boost With Capital Goods Orders Surge in December

The U.S. manufacturing sector started 2026 on a high note, with new orders for key capital goods increasing more than expected in December. According to the Commerce Department's Census Bureau, non-defense capital goods orders excluding aircraft rose 0.6% in December, following a 0.8% increase in November. Shipments of these products also surged, jumping 0.9% after a 0.2% gain in November. The solid growth in capital goods orders and shipments is expected to cement expectations of strong business spending on equipment in the fourth quarter. Economists predict a broad manufacturing sector recovery this year, driven by an AI investment boom and fading uncertainty from tariffs. The economy is likely to have grown at a 3.0% annualized rate in Q4, following a 4.4% expansion in Q3.