Quote of the Day: A Silver Lining in the GDP Report

As I stated yesterday, we’ll be focusing more on the economy this week here on the blog. Here’s a little appetizer via Bespoke Investment Group:

• The rebound in business investment
(strongest contribution to growth since
Q3 2014) is extremely encouraging, and
suggests that the soft patch in US business
investment driven by declining Energy
sector capex is ending. Business non-energy structures investment
was a bit weak but equipment
investment was very strong, as were
housing-related series.

Capital investment has been something that, on balance, has been sorely missing — even before the huge decline in oil prices — during the present expansion. The past several months have seen a pickup, as confirmed by the GDP report. While much of the recent surge in structures owes to the energy patch, the strong equipment numbers (not to mention housing) speak positively about economic prospects going forward…

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