I found this interesting articile in Business Week MagazineDon't count on it, with profits strong and inventories down, capital spending should rally US Economy as 2007 began, everyone was worried about consumers: How would their spending hold up as the housing slump wore on? Well, consumer outlays turned out to be the economy's star performer in the first quarter, with inflation-adjusted spending growing a healthy 3.8%, measured at an annual rate. Now in the wake of some puny0looking numbers on capital spending, economic anxiety has turned to the business sector. The question there: Will a cooler economy, rising labor costs, and a pileup of inventories cause operations to slam the brakes on their plans to expand operations and hire more workers?Clearly, the risks surrounding the outloo...
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