Capital Markets: Observations & Insights
Confidence Is Critical for Spending Business Spending Boost
• CEO confidence tends to lead business spending by 6-12 months • Strengthening business confidence indicates higher corporate spending
CEO Confidence
Business Spending
90
30%
Estimated
80
20%
70
Y-ear-over-Year Change
Increase in CEO confidence bodes well for business spending
60
10%
50
0%
40
30
-10%
Confidence Index
20
-20%
10
-30%
0
1981
1982
1983
1984
1986
1987
1988
1989
1991
1992
1993
1994
1996
1997
1998
1999
2001
2002
2003
2004
2006
2007
2008
2009
2011
2012
2013
2014
2016
2017
2018
Source: FactSet, U.S. Conference Board and U.S. Bureau of Economic Analysis as of 9/30/17. Business spending is U.S. private fixed nonresidential equipment and intellectual property expenditures. Estimate based on regression of confidence and business spending.
Page 5
Made with FlippingBook Annual report