Recent survey data reveal a growing sense of economic optimism. Consumer confidence has returned to pre-crisis levels. Business optimism is also apparent in survey data as well as in the strength of investment. In 2017, investment in capital equipment increased at the fastest pace since 2011, accelerating through the year to a double-digit rate in the second half.
It might be early, but it is possible that the investment drought that has afflicted the U.S. economy for the past five years may finally be breaking.