Unheard of generosity: why business is waiting for a boom in capital investment

The authorities of different countries are gradually easing restrictions related to the pandemic, and people finally have the opportunity to spend their savings. Australian restaurants are booked months in advance. Tickets to British cinemas, which reopened in mid-May, are also out of reach. Americans go to shopping malls en masse. However, not only those who are tired of sitting at home decided to allow themselves more than usual.

Corporate spending has also risen markedly. The capital investments of US companies have increased by 15% over the year, and this applies to both tangible (equipment and construction of new factories) and intangible (software) assets. Firms in other regions also began to spend more.

Experts expect further growth. Analysts at investment bank Morgan Stanley are expecting "an extremely brisk capital investment cycle." They estimate that global capital spending will rise by 121% by the end of next year compared to pre-crisis levels. Consulting company Oxford Economics confirms that there are now all signs of an impending boom in manufacturing investment. Research agency IHS Markit claims that global real fixed capital expenditures will rise by more than 6% this year.