WASHINGTON — Business investment in the United States continued to strengthen in recent months, supported by increased spending on equipment and growing investment in artificial intelligence infrastructure, according to government data, economists and corporate disclosures released this week.
The U.S. Commerce Department reported on Wednesday that new orders for non-defense capital goods excluding aircraft, a closely watched measure of business spending plans, rose in May after a decline in April. Economists said the rebound pointed to continued investment by companies in equipment, computing capacity and related technologies.
According to the data, orders for core capital goods increased more than analysts had expected. The gains were broad-based, with higher demand reported for machinery, electrical equipment, computers, fabricated metal products and primary metals. Shipments of core capital goods, which are used in calculating business investment in gross domestic product, also increased during the month.
“The rebound in core capital goods orders suggests business investment remains resilient,” economists said in assessments following the release, while noting that spending on technology and computing equipment has remained a significant source of demand.
Government data released earlier this year also showed strong equipment spending. Reuters reported in February that an artificial intelligence investment boom was helping underpin business purchases of capital equipment and supporting economic activity. Economists cited growing demand for data centers, semiconductors and advanced computing systems as important drivers of corporate spending plans.
The investment trend has been reinforced by announcements from major technology companies. Research cited by Reuters in February projected that large U.S. technology firms, including Alphabet, Amazon, Meta and Microsoft, could collectively invest hundreds of billions of dollars in AI-related infrastructure during 2026, reflecting continued expansion of data centers and computing networks.
Separate economic reports have indicated that business investment helped offset softer consumer spending in the first quarter. The Commerce Department’s final estimate of first-quarter growth showed that investment activity, particularly in technology-related sectors, remained an important contributor to economic expansion.
Industry analysts have also pointed to rising demand for memory chips, servers, networking equipment and power infrastructure linked to AI development. Companies across manufacturing, construction and technology sectors have reported increased orders tied to data-center expansion and related projects.
At the same time, some economists have cautioned that investment growth remains uneven across industries. While technology-related spending has accelerated, other sectors have shown more moderate growth, according to economic research and corporate reports.
As of Friday, the latest government figures indicated that business spending on equipment continued to rise, with AI-related investment remaining a prominent source of demand. Additional data on second-quarter economic activity are expected in the coming weeks.
