Capital Spending Net Rising Index
The Graph of the Week is the Net Rising Index for Capital Spending from the January 2007 NABE Industry Survey. From the survey:
Capital spending growth among respondents continued, but slowed sharply in the January survey. The capital spending NRI fell to its lowest level in three years–it was at 19 in the January 2004 survey. Despite the slowdown, the NRI remained well above recessionary levels; it was negative for eight consecutive surveys from March 2001 through January 2003. The NRI also comfortably topped its long-term average of 15, and delivered its 15th consecutive positive quarter, with an average net gain of 26 over that period. The capital spending slowdown reflected significant weakening in the goods-producing sector, which fell to a -12 NRI after a modest positive of three in the October survey. The entire goods-producing NRI decline was in manufacturing. All other sectors reported positive NRI, with the services sector accelerating from a 32 NRI in October to 40 in January.
The full NABE Industry Survey is for members only. There is a summary available for the public.
