The Census Bureau reported some good news today regarding business investment:
http://www.census.gov/manufacturing/m3/adv/pdf/durgd.pdf
New orders for business equipment rose in October.
But the chart provides an even stronger impression of recovery. October orders were $70.8 billion, a dramatic improvement from their $50+ billion low.
New Orders for Business Equipment
Click on chart to enlarge.)
Recessions shaded
If you use your mind's eye to update the chart with the latest $70 billion reading, you can see that businesses are planning for a brighter future.
That's an important sign that businesses are willing to increase production. It offsets the sluggishness in consumer demand for homes and cars.
So we have a struggle. Can business optimism prevail over households' pessimism? Stay tuned.
(The chart was taken from http://www.beyourowneconomist.com. [Click on Seminars and then Charts.] Go there for additional charts on the economy and a list of economic indicators.)
© 2010 Michael B. Lehmann
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