Capital Spending Net Rising Index
The Graph of the Week is the Net Rising Index of Capital Spending from the April 2007 NABE Industry Survey. From the survey:
Capital spending growth among respondents continued, but was much less widespread in the April survey. The capital spending NRI fell to its lowest level in more than three years–it was at 5 in the October 2003 survey. (See Figure 6.) Despite the slowdown, the NRI remained above recessionary levels; it was negative for eight consecutive surveys from April 2001 through January 2003. The NRI was close to its long-term average of 15, and delivered its 16th consecutive positive quarter, with an average net gain of 25 over that period. The capital spending slowdown reflected significant weakening in the services sector, which fell to an 11 NRI after recording 40 in the January survey. The goods-producing sector rebounded in April, rising to a 10 NRI following a -12 NRI in the last survey.
NABE members can read the full report online. A summary is available for the public.