Business Capital Spending Up

Here is a little good news for economic development.

After two consecutive years of declines, capital spending by companies in the S&P 500-stock index is expected to turn positive for 2004, says Standard & Poor's. The 500 companies will post a year-over-year spending rise of 5.53%, according to S&P.

Capital expenditures for the first quarter of 2004 vs. the first quarter of 2003 increased 5.36%, S&P says. This was the first quarter-over-quarter increase since the fourth quarter of 2001. Spending for the second quarter of 2004 vs. the second of quarter of 2003 is also running higher, at 5.73%. Historically, 32% of the expenditures are made during the first six months of the year, with the third quarter accounting for 29% and the fourth quarter 39%.

More here.