WASHINGTON (Reuters] – In January, new orders for capital goods made in America grew more than was expected. Shipments also soared. These results suggest an increase in business equipment purchases in the first quarter. But inflation is partly responsible.

According to the Commerce Department, orders for non defense capital goods, which exclude aircraft, increased 0.9% last month. The Commerce Department reported that core capital goods orders increased 0.4% in December. Reuters polled economic experts and predicted that core capital goods orders would rise 0.5%.

After increasing 1.6% in December, core capital goods shipped at a 1.9% pace last month.

The gross domestic product measure uses core capital goods to determine equipment spending.

The fourth quarter saw a rebound in business equipment spending after the downturn in motor vehicle sales in July and September. The global shortage of semiconductors is limiting motor vehicle production.

The surge in oil prices following Russia’s invasion of Ukraine had a limited effect on the equipment and capital expenditures for energy production, according to economists. On Thursday, oil prices rose over $100 per barrel and fell to around $98.7 per barrel by Friday.

Goldman Sachs (NYSE ) reported that shale investment has become less sensitive than price increases.

The order for durable goods, including items that can last up to three years, increased 1.6% in January after increasing 1.2% last December. After a December 1.7% increase, they were supported by an additional 3.4% rise in orders for transport equipment.

After increasing 1.8% in December, motor vehicle orders declined 0.4%. The orders for civilian and volatile aircraft categories increased by 15.6%, after increasing 23.9% in December. Boeing (NYSE: ) stated on its website, that it received 77 orders for aircraft last month, compared with 80 in December.