Positive news from Karl: “Non-residential fixed investment is on fire. Equipment

Positive news from Karl:

“Non-residential fixed investment is on fire. Equipment and Software is burning it up at a 17% growth rate. Indeed, non-residential fixed investment contributed almost as much to growth as did consumption. Not grew at the same rate as consumption, but the absolute increase in business investment was almost as great as the absolute increase in consumption.”

“An open question is how long this blistering level of Business Investment can keep going. It’s a little crazy at this point. We are still below normal on capacity utilization. Real retail sales have yet to make new highs.”