Increasing U.S. Capex Should Boost Growth
Despite weak first-quarter U.S. GDP, which will likely be revised lower after Tuesday’s trade figures, the American economy is on sound footing and looks set to accelerate over the rest of the year. Consumer demand was strong in the first quarter, and the economy is due for a surge in business investment. Rising business confidence, increased capacity utilization, and business surveys all point to increasing capex in the coming quarters. The most recent Senior Loan Officer Survey showed that bank lending standards continue to loosen, which should lead to a near-term jump in capex.
U.S. COMMERCIAL AND INDUSTRIAL LOAN LENDING STANDARDS AND CAPITAL EXPENDITURES