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Exact(17)
"As long as employment growth remains vigorous, income gains should be sufficient to support robust spending".
But without robust spending by big companies, double-digit growth in business spending is unlikely.
There was robust spending for equipment, software, office buildings, warehouses and other commercial buildings.
The drop raised questions about how robust spending is likely to be during the holiday shopping season.
But sales for the month rose solidly, the government reported Friday, raising hopes that the economy would benefit from more robust spending.
Advocates of lower taxes, especially for the wealthy, and of more robust spending on defense would fare considerably better under a Romney presidency.
Similar(42)
The Japanese government raised its economic growth forecast today, saying its previous estimate was too cautious in light of robust corporate spending and an expected increase in consumer spending.
They hold to the view that robust business spending on capital goods can lead the way, generating consumer spending in its wake.
The positive outlook remains in place for 2007 for the commercial aerospace cycle and robust defense spending, with Boeing and Airbus ramping up production, and war on terror spending continuing to grow.
"In our view, Transocean will be a prime beneficiary of our robust 2005-2006 spending outlook given their leverage to offshore and international drilling markets, where we expect spending to play catch-up with spending in North America," CSFB said.
Consumers have grown more cautious, and businesses have not yet resumed robust investment spending.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com