In a report on the economy, Bloomberg said the long-awaited pickup in U.S. business investment will take place this year. Bloomberg notes, according to economists, that the oldest capital stock in decades, more clarity on fiscal policy, improving growth prospects and companies awash in cash mean the stars have aligned to boost spending on commercial structures and equipment.
An economics professor at Stanford University is quoted by Bloomberg as saying, “Conditions are perfect, so business-investment rates should be at the kind of levels we saw in the mid-2000s. Equipment expenditures climbed 8.6% on average from 2004 to 2006. If it doesn’t come this year, it’s never going to come.” Check out the Bloomberg Article here.