Archive · 26 Jul 2025
US Business Equipment Investment Slows Amid Policy Uncertainty
Imagine businesses buying new tools and machines.
Lately, they haven't been buying as much.
In June, orders for these tools went down.
This is because companies are worried about things like tariffs (extra taxes on imported goods) and what the government will do with taxes.
Some companies rushed to buy things earlier to avoid these tariffs, but now they're slowing down.
Economists think that spending on these tools will slow down or even shrink.
This is a bit of a problem because it affects how much the economy grows overall.
US business equipment investment slowed sharply in Q2 2025.
New orders for capital goods excluding aircraft declined in June.
Economists expect equipment spending to slow dramatically or contract.
Uncertainty over tariffs and tax policy is impacting corporate spending.
Manufacturing activity contracted in July for the first time since December.
- Who
- US businesses and economists
- What
- US business equipment investment has slowed.
- When
- The slowdown was observed in Q2 2025, with data released on July 25.
- Where
- United States
- Why
- Due to policy uncertainty and trade tensions, particularly regarding tariffs and tax policies.
Impact of Tariffs and Tax Policy
Government Policies
Business investment
Impact of Tariffs and Tax Policy
Companies are delaying investments due to the unpredictability surrounding tariffs and tax policies under the US President Donald Trump’s administration.
Government Policies
The administration’s policies offer tax incentives for capital investment.
- Capital Goods Orders (June)
- Fell 0.7%
- May Rebound
- 2.0%
- Core Capital Goods Shipments (June)
- Rose 0.4%
- Durable Goods Orders (June)
- Fell 9.3%
- Aircraft Bookings Plunge
- 51.8%
- Manufacturing Activity
- Contracted in July