Home / Business and Economy / AI Spending Boosts Factory Orders Despite Aircraft Fall
AI Spending Boosts Factory Orders Despite Aircraft Fall
2 Jul
Summary
- New factory orders fell 1.3% in May due to fewer aircraft bookings.
- AI spending continued to support manufacturing, offsetting other declines.
- Core capital goods orders rebounded, showing business investment plans.
New orders for U.S. factory goods decreased by 1.3% in May, a shift from April's upward revision. This decline was primarily influenced by a substantial fall in commercial aircraft orders.
Despite the dip in aircraft bookings, broader demand within the manufacturing sector showed strength. This resilience is significantly bolstered by ongoing investment in artificial intelligence technologies. Manufacturing, representing 9.4% of the economy, continues to benefit from this AI boom.
Orders for computers and electronic products saw a modest increase, and machinery orders experienced a notable surge. Additionally, there were significant gains in primary metals and fabricated metal products.
Measures of business spending plans also showed positive signs. Orders for non-defense capital goods, excluding aircraft, rebounded by 1.4% in May. Shipments of these core capital goods edged up, indicating continued business investment in equipment.
