Many firms, particularly in the high-tech sector, have been surprised by the slump in demand or by the entry of competitors or the introduction of new products. In many of these instances, capital spending plans have been shelved or delayed. But the anecdotal evidence does not all point in one direction.
A recent survey from the National Association for Business Economics showed that, at least among the companies that belong to that organization, the number of firms that perceive that they are still under-invested in high-tech equipment exceeds the number that have over-invested by a considerable margin.