Positive Signs for US Business Investment

20 November 2002

Business investment growth in the US will quicken in the fourth quarter, but the rate will be well below traditional levels, according to new research from consultancy The G7 Group.

In a preliminary reading, the firm’s index of Q4 capital spending has jumped from –37 in the last quarter to –25.

A figure above –33 signals rising investment, but a figure between –33 and 0 shows spend is rising at a rate below the historical mean of 5%.

The fourth-quarter reading translates into a 1.1% year-on-year increase, which would be an improvement on the actual rise in investment of 0.6% in Q3, itself the first climb in two years.

Data sourced from: The Wall Street Journal Online; additional content by WARC staff