23 June 2017

Business Investment Outlook Brightens

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Businesses may finally be ready to spend the $1.6 trillion in cash they've been hoarding. And that's good for the economy.

A survey out today shows 61% of corporate economists say their firms will likely increase capital spending in the next year. That's up from an average 52% in the past four quarterly surveys by the National Association of Business Economics (NABE).

Companies with big spending plans include Whirlpool. It's investing $40 million to double the size of its KitchenAid mixer factory in Greenville, Ohio, and add 400 jobs there by 2018.

Finishing Professionals in Denver, which coats metal parts, recently spent nearly $1 million to automate one assembly line and add a second, says owner Dan Cahill. The economy has improved enough, Cahill says, that his customers say they'll place steady orders.

Business investment in equipment and buildings drives economic growth because the companies they buy from hire workers to meet the rising demand. Factories that buy new machines often must bring on employees to operate them.

Click here for the full article in USA Today.

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