Business Spending Rising, Survey Finds

More than two years after clamping their wallets shut, U.S. businesses are boosting spending on facilities and equipment, offering hope of a firmer recovery.

A survey of 123 businesses by the National Assn. for Business Economics found that, by a slim margin, more firms increased capital spending than cut it in the second quarter, ending a downturn that dragged the economy into recession in early 2001.

The NABE said 44% of the firms expected to raise investment spending in the coming year, while only 17% foresee a drop.

The survey also found that businesses saw demand pick up in the second quarter after a sluggish start to the year. However, profit margins shrank and the news on jobs was bleak.