Key Facts
• On July 25, the U.S. Commerce Department reported June core durable goods orders fell 0.7%.
• Economists had forecast a 0.2% increase; May’s data was revised up from 1.7% to 2.0%.
• Core capital goods shipments rose 0.4% in June, compared to 0.5% in May.
• The decline reflects reduced pre-tariff demand and hesitancy in corporate investments.
• Tariff-related spending persists, but uncertainty over final tariff levels impacts investment.
• Equipment investment surged in Q1 due to preemptive tariff-related purchases.
Summary
The U.S. Commerce Department announced a 0.7% drop in June core durable goods orders, a key indicator of private equipment investment. This unexpected decline contrasts with economists’ predictions of a 0.2% increase. May’s data was revised upward to 2.0%. Core capital goods shipments rose 0.4% in June, slightly below May’s 0.5% growth. The decrease highlights waning effects of pre-tariff demand and growing corporate caution amid tariff-related uncertainties. While some tariff-driven spending continues, the unclear final tariff levels have led to restrained investment. Earlier in 2025, equipment investment surged due to preemptive purchases ahead of broad tariff implementations.
