Morgan Stanley takes stock of various regional surveys and notes that as the winter months fade, companies are saying they’re going to spend more on Capex (capital expenditures) which is a bullish sign for the economy.
They note that the recovery isn’t absolute. It’s a bounce, but there’s still a ways to go to get back to the highs seen late last year.
Still it’s a step in the right direction.
Whether this materialises into a sustainable boost for the US economy remains an open question.
Last week at FT Alphaville, Cardiff Garcia had a great post, running through the various arguments that we are bound to see a lift in Capex in the second half of the year.