Wednesday, September 3, 2014

Annual Change In US Capital Spending Remains Below Long-Term Trend

From The Wall Street Journal, "U.S. Manufacturing Is Rolling on Aged Wheels: Companies Skimp on Industrial Equipment While Pursuing Deals and Share Buybacks" by James R Hagerty:
Even as economic indicators rise, domestic capital spending has remained anemic by historical standards, especially in manufacturing.
The average age of industrial equipment in the U.S. has risen above 10 years, the highest since 1938, economists at Morgan Stanley said in a recent report.

The growth of all types of capital spending by U.S. firms grew just 3% last year, far below the long-term average of more than 8%, Morgan Stanley says. The firm sees only modest improvement ahead: 3.8% growth this year and 5.3% in 2015.

Annual Change In Capital Spending
Source: The Wall Street Journal

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