A Good Sign That Companies Are Going To Increase Their Spending

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.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.