Much Ado About Nothing February 22, 2013Posted by geoff in News.
Reuters goes hardcore Pollyanna on the economy with this uber-upbeat headline:
Analysis: U.S. companies plan to spend, a boost for the economy
U.S. companies’ capital spending plans are holding up, and mostly exceeding Wall Street forecasts, in the face of policy concerns created by arguments in Washington over the fiscal cliff, the debt ceiling and now automatic spending cuts.
Their willingness to spend on new offices, plants and machinery, as well as a pickup in deal making, shows that they are starting to dig into the massive amounts of cash that has been collecting more dust than interest on their balance sheets. That could prove a welcome counterpunch to a softer outlook for spending by consumers and government.
Sounds like companies are ready to unleash a tidal wave of spending, doesn’t it? So out with it!! How much more are they planning to spend!?!
Those that have issued guidance are expecting to spend $1.59 billion on average in 2013. While that’s only a modest increase from the 2012 average of $1.57 billion, it is above the analysts’ estimates.
You got me off the couch over a 1.3% increase in spending? A rate of increase that’s smaller than inflation? And that’s supposed to be significant just because the analysts were more wrong than usual?
Say what you will about this president, but he has managed to generate unrealistic optimism among his faithful like no president before him.