Despite a headline decline in durable goods orders in May, the broader outlook for business investment remains highly positive—good news for material-handling dealers serving manufacturers, distribution centers, and logistics operations.
According to a June 25, 2026, Oxford Economics economic data report, durable goods orders fell 4.5% month-over-month, largely due to a sharp drop in transportation equipment orders, one of the most volatile categories. However, a closer look reveals a much stronger underlying trend. Nondefense capital goods orders excluding aircraft—a key indicator of business investment intentions—rebounded 1.6% after declining the previous month. Shipments in the same category, which directly impact GDP calculations, increased for a fourth consecutive month.
Economists now estimate that business equipment investment will grow at an annualized rate of nearly 14% during the second quarter. While that represents a modest slowdown from the exceptional pace recorded in the first quarter, it remains well above expectations and highlights continued confidence among businesses investing in productivity and growth.
For material handling dealers, the implications are significant. Strong capital spending typically translates into increased demand for forklifts, warehouse equipment, automation technologies, storage systems, and fleet upgrades. Ongoing investments in artificial intelligence infrastructure and technology-driven operations continue to fuel purchases of computers, electronics, and supporting equipment across the supply chain.
Business sentiment has also remained resilient despite concerns surrounding geopolitical tensions, energy prices, and interest rates. In addition, new tax incentives allowing full up-front expensing of equipment investments are expected to encourage further capital spending across multiple industries.
Although higher borrowing costs could put pressure on investment decisions, economists expect equipment spending to remain one of the strongest contributors to U.S. economic growth through the remainder of the year and into 2027.
For material handling dealers, the message is clear: customers are still investing, and the market environment remains favorable for equipment sales, fleet modernization, and warehouse expansion projects
