Spending on high-tech equipment has been rising at an annual rate of more than 15 percent, several percentage points faster than in 2003 and 2004, with spending especially strong for telecommunications equipment. Outlays for nonresidential construction firmed in 2005 and turned up notably in the first quarter of this year.
Not surprisingly, outlays on structures used in energy production strengthened in response to higher energy prices, but the rise in the first quarter also reflected an increase for office, retail, and industrial structures. At the same time that the growth in cash balances has started to reverse, the pace of debt financing has also picked up.