Search
 
Best Practices

Pulse Points

Noted economists analyze three critical focal points for the economy over the next year

By Staff Writer | Updated on August 01, 2006

CAPITAL INVESTMENTBy Diane C. Swonk, Mesirow Financial

Until recently, businesses have been reluctant to put their money where one might think their profits might take them–capital investment. Instead, companies used their excess cash to buy back stock at a record pace, increase their dividend payouts and improve their market position through mergers and acquisitions. Indeed, very little cash was invested in upgrading capital stock, expanding capacity or betting on future growth. Those trends, however, are about to change as firms are not only committing more to new technologies, but also are trying to catch up on investment deferred at the start of the recovery. The result will be a late-in-the-cycle investment boom and a reacceleration in productivity growth–much like the capital spending surge that we saw in the late 1990s.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

Trump vs. Harris: A Clash of Visions on Trade Policy

Trump vs. Harris: A Clash of Visions on Trade Policy

Ronald Baumgarten, Jr., Tung Nguyen & James Perry |

Both candidates want to promote U.S. jobs and investment at home, but they disagree on how to do so: tariffs versus economic subsidization.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.