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Will Business Investment See Upturn in 2012?

January 11, 2013

By Robert Karofsky

Business analysts expect investment in new equipment and buildings to pick up in the second half of 2012, according to a report on Kiplinger.com. The trend is expected to gain steam amid improved job creation and overall growth as compared to the first six months of the year.

Overall, business investment should grow an annual rate of 8 percent in the last two quarters of 2012, as opposed to just 3 percent during the months of January through June.

An early sign of the coming uptick came in May when new orders for durable goods rose by 1.1 percent. Analysts expect overall orders of durable goods to increase by approximately 10 percent for the year. Orders for autos, steel products, and airliners should lead the trend.

Most economists expect inventories to remain relatively unchanged by the end of the year, as businesses seek to balance inventory levels with sales.

About Robert Karofsky: A respected financial services executive, Robert Karofsky holds an MBA from the University of Chicago Booth School of Business.

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From → Robert Karofsky

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