US Corporate Spending

U.S. corporate spending on capital projects could fall this year to the lowest level since 2011, with steep reductions by the energy industry and companies in other sectors cutting spending amidst broad concerns about global growth.

Among the S&P sectors, only the materials and financials sectors expect to spend more in 2015 than they did last year, according to a Thomson Reuters analysis of spending outlooks from the 255 S&P 500 companies that have offered guidance on their capex for the year.

Analyst projections for all S&P 500 companies point in the same direction: a grim year for capital expenditures.

The numbers suggest that corporate bosses across many sectors are less confident in the economy than they had been in recent years.

“They’re not spending at a pace that would suggest a global recovery,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

That could translate to lower job growth and weakness in the technology and industrial companies that typically benefit from capital spending.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza