There is a point in every recovery when small businesses move from slashing costs to spending more on new plants and industrial machinery, trucks, computers, office equipment and furniture. There are signs that this may be where the recovery is now, according to three recent measures of small firms’ fixed investment trends.
Among 798 small private firms with less than $20 million in revenue, for instance, 51% said in August that they planned to increase their capital spending in the next 12 months.
That is a record high, and it is also up from 42% a year ago, according to the survey by The Wall Street Journal and Vistage International, a San Diego executive-advisory group. Read the entire Wall Street Journal article here.