As the growth of consumption eases back a little, so too should the increase in capital spending as firms come to anticipate slower growth in sales. But judging from rising global commodity prices and equity valuations abroad, foreign demand looks to be increasing, and rising exports should offset some of the scaling back of domestic sales prospects.
In addition, technological advances will continue to boost demand for capital equipment by reducing its costs and increasing its usefulness in improving efficiency. If, as I anticipate, economic growth moderates a touch and pressures on labor and product markets do not intensify substantially further, I believe that underlying inflation should remain roughly stable.