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May 22, 2006
Capex Not Providing A Boost
The Wall Street Journal Reports:
“Capital spending by energy companies soared 65.9% in the first quarter, prompted by high energy prices and, perhaps, political pressure, according to the research firm Thomson Financial. For the entire S&P 500, capital spending rose 26.8% in the first quarter, well ahead of the year-ago pace of 12.9%, according to Thomson.”
The Consumer Discretionary and HealthCare sectors are not investing. However, I doubt if these figures includes R&D for the HealthCare. This is where HealthCare invests its money. The Information Technology and Consumer Staples sectors are investing. It is good to see investment in Information Technology picking up and I wonder where the investment in Consumer Staples comes from (goes to).
Posted by Arthur B. Hill at May 22, 2006 10:39 AM