12/24/2024

Capital Spending: The Economy’s Weak Spot

One economic trend that hasn’t done its bit for this 6½-year recovery: capital spending.

Hiring has improved, stock markets have rallied and consumer confidence has rebounded. But U.S. corporations remain hesitant to deploy funds to new projects and equipment, or to upgrade facilities and technology. Instead, companies continue to shower shareholders with record levels of dividends and buybacks.

This skittishness to spend has…

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