Advertisement
Economic Forecasts

Business Spending Powering On

Kiplinger’s latest forecast on business equipment spending

Capital spending is still on a roll, rising 1.5% in August, fully regaining its prerecession level and then some. Computer and communications equipment spending is still hot, evidence that many companies continue to equip their workforces for remote work. Machinery spending and orders are strong. Even though many uncertainties about the economy’s progress remain, businesses are apparently deciding to push ahead with expansion plans that had been on hold, in order to be prepared for the eventual recovery. New orders are also tracking the strength in spending.

Advertisement - Article continues below

A decline in motor vehicle and parts spending and orders was likely just a pullback after July’s surge. The same was true for defense spending.

Now that the price of West Texas Intermediate crude oil has picked up to around $40 per barrel, a modest boost for purchases of oilfield equipment seems likely. The number of active drilling rigs has ticked up in Texas and Louisiana lately. However, spending on rigs and related gear could falter again if oil prices retreat later in the year.

Sources:

Advertisement
Advertisement

Most Popular

Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
September 18, 2020
Social Security Recipients, Veterans Must Act Now to Get Extra $500 Stimulus Check
Coronavirus and Your Money

Social Security Recipients, Veterans Must Act Now to Get Extra $500 Stimulus Check

The deadline for seniors and veterans to request an additional $500 stimulus check for a dependent child is approaching fast. See how you can claim yo…
September 25, 2020
3 Reasons to Wait Until 70 to Claim Social Security Benefits
social security

3 Reasons to Wait Until 70 to Claim Social Security Benefits

In a rush to file for Social Security benefits at age 62? Many people are, but slow down and do the math first.
September 29, 2020