US Economics

US Economics Weekly

5 January, 2018

Investment boom should continue in 2018

Business investment enjoyed a strong resurgence last year, particularly in the second half. Our estimates imply that business investment increased by 7.5% annualised in the fourth quarter, the biggest gain in more than three years. Furthermore, with borrowing costs still relatively low and new measures to encourage capex being introduced as part of the tax overhaul, that stronger momentum in business investment should be sustained through the first half of this year.

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