Demand for artificial intelligence infrastructure, business equipment and transportation equipment drove an increase in durable goods orders in September, according to data released Tuesday (Oct. 27) by the Census Bureau.

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New orders for nondefense capital goods, excluding aircraft, increased by 0.5% in September, according to the Census Bureau’s data on durable goods manufacturers’ shipments and new orders.

This metric, known as “core capital goods,” is widely seen as a barometer of business investment, PYMNTS reported in April.

Overall, new orders for durable goods increased 1.8% in September, marking the sixth out of the last seven months in which these orders increased, the Census Bureau said in a Tuesday press release.

Transportation equipment saw the biggest increase, rising 4.6% in September. This category has increased in two of the last three months, according to the release.

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The AI boom drove the increase in core capital goods, Reuters reported Tuesday. Business spending on equipment remains robust, despite concerns about the cost of the AI infrastructure buildout.

Together with the 0.5% month-over-month increase in core capital goods, there was a 10.9% year-over-year increase in the category, per the report.

8% rise in orders for durable goods was the largest increase in five months, Bloomberg reported Tuesday. 4%, as well as computers, machinery and motor vehicles.

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