The vacancy rate for industrial buildings, a sector that generally keeps pace with manufacturing activity, has flattened out around 10 percent over the past six quarters after having risen markedly for the preceding three years. Thus, at the moment, the various indicators are giving fairly mixed signals.
However, the mixed signals are still an improvement over the almost uniformly negative tone of the markets for nonresidential structures a year or two ago. To me, they suggest that the nascent upturn in this sector is likely to continue. Inventory investment So far I have discussed business fixed investment. Another important part of capital expenditures, however, is inventory investment.