Local Law Firms Home > Business Law News > Companies Increase Their Investment Spending Companies throughout the country increased their investment spending in August despite the turmoil caused by hostile political conflicts in Washington, and some financial experts projected their predictions for financial growth this quarter. On Wednesday, The Commerce Department announced that orders for capital merchandise outside of the military sector and omitting aircraft, a carefully watched proxy for corporate spending, increased 1.1 percent after decreasing 0.2 percent in July. One economist suggested that if America was in a recession, citizens would expect to see company orders for capital goods going downhill but they aren’t. Tremendous instability in economic markets, as politicians in Washington disputed over budget policy and Europe struggled to come to terms with its debt predicament, has knocked assurance and elevated the threat of a new recession. But companies are showing some good signs in the recovery. Although commercial spending plans point to increased growth, the study also established a decelerating trend in manufacturing. General orders for durable merchandise — goods meant to last at least three years or longer, such as aircraft or toasters — decreased 0.1 percent after a 4.1 percent increase in July. While the country does not know yet about the split between how much went to foreign versus domestic purchasers, this nearly certainly suggests another strong quarter for capital equipment spending. The orders, which are unpredictable from month to month, decreased despite a 23.5 percent increase in orders for civilian aircraft. According to Boeing’s website, they received 127 purchase orders for airplanes, an increase from a 115 order in July, with Delta Airlines purchasing an order for 100 airplanes. Excluding transportation, purchases also decreased 0.1 percent after jumping to 0.7 percent in July. |