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).
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.
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.
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.
for the full article in USA Today.