Courtesy of Mish.
Core Capital Spending Down Every Month Since January
Year-over-year core capital spending by manufacturers has been in negative territory for the last 10 months. Core capital spending is defined as nondefense capital goods, excluding aircraft.
The current year-over-year decline is about 1.78%. Part of the decline is due to the oil industry collapse. Another part is due to corporations deciding to invest in share buybacks rather than their actual businesses.
Core Capital Spending Since 1994
Big declines in core capital spending occurred in the last two elections, but this dip does not yet measure up.
Signs of a Soft Rebound?
The Wall Street Journal discusses the 2016 forecast in Will Business Spending and Profits Rebound This Year?
Unconvincing Forecast
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