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President Trump highlights a 1.9% surge in core capital-goods shipments as a sign of American business investment.

The administration announced that core capital-goods shipments surged by 1.9% in June, signaling a robust period of private capital formation despite a modest 0.3% rise in overall durable goods orders. While the headline figure may suggest a little manufacturing momentum, the underlying data reveals that businesses are actively purchasing machinery, computers, and electrical systems to expand production. Excluding volatile transportation, orders for nondefense capital goods rose by 0.9%. This growth is driven by a significant increase in computer and electronic-product orders, which rose 3.1%. These investments are essential for raising productivity and expanding the economy's long-run capacity. President Trump emphasizes that while a significant portion of these investments currently comes from imports, the administration's reciprocal trade policy and reshoring strategy aim to transition these investments into domestic production. The goal is is to rebuild domestic supply chains and reduce reliance on foreign capital goods.

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