Business Spending Gets a Bounce
Kiplinger’s latest forecast on business equipment spending
Capital spending is bouncing back sooner than expected, but it won’t fully recover until next year. Both because of the slowdown in the global economy, and because the efforts to contain the coronavirus will take time, businesses will mostly adopt a wait-and-see attitude before committing to expansion plans.
Still, spending is rising as businesses reopen and attempt to reestablish normal operations. The surge in motor vehicle production has benefited metals and parts makers, for instance. In the energy sector, oilfield rigs are no longer being shut down, and the number of active rigs has stabilized now that West Texas Intermediate crude oil has reached $40 a barrel. That may mean a modest boost for purchases of oilfield equipment.
- 1Kiplinger’s Economic OutlooksRegularly updated insights on the economy’s next moves.
- 2GDP: -5.8% growth in 2020, down from 2.3% in 2019Kiplinger’s latest forecast for the GDP growth rate
- 3JOBS: States are reopening, but workers will come back slowlyKiplinger’s latest forecast on jobs
- 4INTEREST RATES: 10-year T-notes staying below 1.0% for a whileKiplinger’s latest forecast on interest rates
- 5INFLATION: 0.6% through '20, from 2.3% at end '19Kiplinger’s latest forecast on inflation
- 6BUSINESS SPENDING: Down 10% to 20% in '20 - currently readingKiplinger’s latest forecast on business equipment spending
- 7ENERGY: Crude oil trading from $35 to $40 per barrelKiplinger's latest forecast on the direction of energy prices
- 8HOUSING: Total starts down 6.6% in '20Kiplinger's latest forecast on housing starts and home sales
- 9RETAIL SALES: E-commerce surge will endureKiplinger’s latest forecast on retail sales and consumer spending.
- 10TRADE DEFICIT: Widening 3% in ’20Kiplinger's latest forecast on the direction of the trade deficit.