Skip to main content

Business investment plunging, money supply soaring

Revised data show a slump in business investment in Q2 and we believe that capital spending won’t recover until next year. By contrast, the money supply is going from strength to strength. With around half the fiscal support scheduled for the current fiscal year yet to spent, money supply growth should remain strong over the coming months. While we still expect inflation to weaken in the near-term, rapid money supply growth poses medium-term upside risks.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access