US business spending on equipment appears to have ended 2025 on strong note

Orders for key U.S.-manufactured capital goods rose more than expected in December, driven by a massive investment boom in artificial intelligence and data centers. Business spending on equipment surged at the end of 2025, setting a solid foundation for continued economic growth in 2026. While tariffs have slightly hindered some manufacturing sectors, economists expect a broad recovery as firms outside of tech begin to re-engage with capital investments.