AT LAST, CAPITAL SPENDING STARTS TO JOIN THE RECOVERY

摘要

For months, capital spending has been limited by a host of problems, including the tech bust, a profits recession, and overcapacity. Throw in worries over the Middle East, rising oil prices, plus the threat of terrorism, and it's easy to see why corporate executives have been hesitant to shell out more money for new assembly systems, copy machines, and office space. Now, though, capital spending is taking a turn for the better. The signs are small, but growing: Key areas of business-equipment investment, especially high-tech gear, posted modest growth in the first quarter for the first time in more than a year. Those gains continued in April, according to the latest orders report (chart). Equally important: The Commerce Dept.'s upbeat data on first-quarter profits and cash flow show that companies have the funds to start spending again.