The Atlanta Fed's SouthPoint offers commentary and observations on various aspects of the region's economy.
The blog's authors include staff from the Atlanta Fed’s Regional Economic Information Network and Public Affairs Department.
Postings are weekly.
Capital expenditure plans for regional firms
We recently reached out to our regional business contacts to gauge their intentions regarding capital expenditures. The results of our regional survey showed that over half plan to increase capital spending over the next six to 12 months. Only 14 percent anticipate decreasing spending from current levels.
Of the businesses that planned to increase spending in the near term, high expected growth of sales and the need to replace information-technology equipment were the two most common factors driving their plans. Firms that commented in the "other factors" category cited expansions as reasons for increasing spending now. Decreased economic/financial uncertainty was the least cited factor.
Among the businesses that said they do not plan to increase spending in the near term, firms cited increased or high economic/financial uncertainty, limited need to replace capital goods, and low expected growth of sales as the major factors behind not increasing capital spending.
Indications are that the broader regional economy continues to grow at a modest pace, and the results from our recent capital expenditure poll appear to support that conclusion. Firms continue to invest, driven largely by expectations for improved sales. Those that have chosen to hold off noted that uncertainty is the main factor, so if the future becomes less cloudy we might expect further increases in capital spending.
By Mike Chriszt, a vice president in the Atlanta Fed's research department
TrackBack URL for this entry:
Listed below are links to blogs that reference Capital expenditure plans for regional firms:
- Southeast Manufacturing: Solid as an Oak
- The Fruits of Our Labor
- Tracking Energy’s Trajectory
- Southeast PMI Surges in February
- Tiny Bubbles in Alabama
- Through the Eyes of a Big Fan
- Southeastern Manufacturing Sees No Shadow
- Southeastern Labor Market Continues Strengthening
- A New Year, a Better Economy?
- Florida's Economic Rebound Continues
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- Banks and banking
- Beige Book
- Business Cycles
- Commodity Prices
- Consumer Savings
- Data Releases
- Disaster recovery
- Economic conditions
- Economic Growth and Development
- Economic Indicators
- Fiscal Policy
- Gulf Coast
- Health Care
- Holiday Sales
- Labor Markets
- Local Economic Analysis and Research Network (LEARN)
- Monetary Policy
- Natural Disasters
- New Orleans
- Oil Spill
- Real Estate
- Sales Tax