Wednesday, August 26, 2009
The beginning of the recovery is coming into sharper focus with each data release these days. This chart shows business investment in capital goods, and it has clearly rebounded from its lows earlier this year. New capital spending reflects rising business confidence, and it creates the seed corn for future productivity gains, so this is a very welcome sign. Investment is still awfully low compared to what it has been in the past, of course, but on the margin things are once again improving and that is what counts.
Posted by Scott Grannis at 9:55 AM