Capital Spending Improves for 2014

by Laura Ehrenberg-Chesler on January 24, 2014

in Economic Indicators,Employment,equity market

In another good sign for the economy, Ed Yardeni reported several days ago in his regular research piece, that capital spending for businesses large and small, has improved. “More capital-spending plans. Another upbeat reading from the survey is that 24% of firms have capital-spending plans over the next three to six months, the highest level since November 2008 . Those capital-spending plans are highly correlated with the percent of firms reporting that earnings were higher minus those reporting that they were lower over the past three months. The up/down balance of earnings has recently rebounded back close to the

June 2012 cyclical high, and is consistent with more upside to capital-spending plans by small businesses.” This reading gives us more confirmation that 2014 could

be another good year for the equity markets, as companies spend, and hire.

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