More than two years after clamping their wallets shut, American businesses have begun to boost spending again on facilities and equipment, offering some hope of a firmer recovery, the latest survey by the US National Association for Business Economics (NABE) showed.
The survey of 123 businesses found that, by a slim margin, more companies had increased capital spending in the second quarter than cut it, ending a downturn that dragged the US economy into recession in early 2001.
“There is good news for the economic recovery as industry demand bounced back from a weak first quarter, while capital spending rose modestly after eight quarters of decline,” said NABE president Tim O’Neill.
NABE said that 44% of the companies expected to raise investment spending in the coming year, while only 17% foresaw a drop, “suggesting the long decline in capital spending truly is ending.”
