WASHINGTON, D.C. — American businesses are increasing spending on equipment at a rapid pace, with the artificial intelligence boom emerging as a major driver of investment across the U.S. economy.

Commerce Department data showed that orders for non-defense capital goods excluding aircraft, a closely watched measure of future business investment, rose 0.9% in June following a revised 1.9% increase in May. Shipments climbed 1.9%, their biggest increase in four and a half years.

The increase was particularly strong in industries connected to the technology and AI expansion. Computers, electronic products and electrical equipment recorded solid demand as companies invest in the infrastructure needed to develop and operate advanced AI systems.

The surge in capital spending is important for the wider U.S. economy because business equipment investment contributes directly to economic growth. Economists expect equipment spending to maintain double-digit growth for another quarter, supporting the broader economic outlook.

Manufacturing is also benefiting from the investment cycle. Companies are expanding their technology infrastructure and purchasing equipment even as businesses continue to face uncertainty from tariffs, geopolitical tensions and changing energy costs.

The latest figures suggest that AI is becoming more than a technology story — it is increasingly influencing American corporate investment and manufacturing activity.

However, economists are watching whether the rapid increase in AI-related spending could eventually add to inflationary pressures. The Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting, leaving businesses focused on both borrowing costs and future demand.

For U.S. companies, the investment surge represents a significant opportunity to modernize operations and improve productivity. For investors, the figures provide another indication of how deeply AI spending is becoming embedded in the American economy.