Capital Spending Getting A Lift From Washington

Inflation-adjusted capital spending rose 4% y/y during Q4. That was a solid increase. However, it may be starting to slow. The CEO Outlook Index compiled by the Business Roundtable fell most of last year as the Fed's interest rate hikes heightened recession concerns (chart).

Nondefense capital goods orders excluding aircraft have stalled at a record high in recent months through January (chart). The weakness in primary metals, fabricated metal products, and machinery has been offset by record highs in electrical equipment, appliances, & components and motor vehicles and parts.