20 Jun CAPEX RISING

MEANS, MOTIVE, AND OPPORTUNITY

Increased business capital expenditures, or “capex,” remain one of the
most important pieces for improving the long-term growth trajectory of the
U.S. economy. Capital expenditures help increase productivity, and improved
productivity is the foundation for sustainable higher growth for developed
economies. Both survey and hard data continue to confirm that we might be seeing
a rebound in capex, but how can we know it’s sustainable? The answer may be in
our beach reading. Like the veteran detective in a favorite page-turner, we look for
means, motive, and opportunity. For capex spending, means translates to additional
sources of funding for projects, motive comes from increased business confidence
and tight labor markets, and opportunity from fiscal incentives and global growth.

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