CHART OF THE WEEK
April 23-27, 2018

Business Leaders' Expectations for Capital Investment at Record High

The Business Roundtable’s 2018-Q1 survey reports that 68% of business leaders expect that their company’s capital spending will be higher over the next 6 months—the highest in the survey’s 15-year history. The Tax Cuts and Jobs Act helped to raise these expectations by both lowering tax rates and allowing companies to immediately write off the cost of business investments like equipment.

Capital spending, which has languished since the last recession’s end, is important for increasing worker productivity and fueling wage growth.

Upcoming JEC Hearing

How the Innovation Economy Leads to Growth 
(Wednesday, 2:00pm, Hart Senate Office Building, Room 216)

 

Chairman's Corner

In an interview on Fox Business, Joint Economic Committee Chairman Erik Paulsen (R-MN) today told Stuart Varney that Americans are feeling relief thanks to tax reform, and the news is only going to get better. 

“The economy is humming, wages are rising, business optimism is at some of its highest levels ever, and now we have sustainability with new capital investment, and with special bonuses," said Chairman Paulsen. He continued:  

"In the end, it's the policies that matter. My job as Chairman of the Joint Economic Committee with my team of economists is to study the results and we're seeing really good results on the economy. People care about their pocketbook. They don't want to go backwards with higher taxes or see our jobs move overseas again.

"We're seeing companies reverse decisions, come back to the United States, and keep headquarters, innovation, and jobs here. Our competitors aren't going to stand still. They're going to keep working every day to beat us, and we're in a good position now at the forefront."

LAST WEEK

JEC Releases

Stock Buybacks are Great for Working Americans
Takeaways from CBO’s 2018 Budget and Economic Outlook

News & Commentary Weekly Highlights

Wall Street Journal: The Wages of Tax Reform Are Going to America’s Workers [CEA Chair Kevin Hassett]
Wall Street Journal: U.S. Leading Economic Indicators Rose in March
Bloomberg: Dudley [NY Fed President] Doesn't See ‘Compelling’ Case for Faster Fed Rate Hikes
Economics21: Ten Questions for Economists Downplaying Entitlement Costs

Top Economic Indicator Highlights

Fastest Increase in Industrial Production since January 2011

Industrial Production and Capacity Utilization (March 2018)

The Fed’s industrial production index covers nearly everything tangible produced in the United States: At 4.4%, March saw the fastest year-over-year increase in industrial production since January 2011; capacity utilization is its highest since January 2015.

Category	Mar	Feb	Jan
Industrial production (year-over-year percentage change)	4.4%	4.3%	3.0%
Capacity utilization (percent of capacity in active use)	78.0%	77.7%	77.1%

THIS WEEK

Upcoming Economic Data

Monday

Chicago Fed National Activity Index (8:30am)
PMI Composite Flash (9:45am)
Existing Home Sales (10:00am)

Tuesday

Home Price Index (S&P CoreLogic Case-Shiller) (9:00am)
Housing Price Index (FHFA) (9:00am)
New Home Sales (10:00am)
Consumer Confidence (10:00am)
Richmond Fed Manufacturing Index (10:00am)

Wednesday

No major releases     

Thursday

Jobless Claims(8:30am)
Manufacturers’ Shipments, Inventories, & Orders (Advance) (8:30am)
Advance Economic Indicators Report (8:30am)
Kansas City Fed Manufacturing Index (11:00am)
Federal Reserve Balance Sheet (4:30pm)
Money Supply (4:30pm)

Friday

Gross Domestic Product (Advance Estimate) (8:30am)
Employment Cost Index (8:30am)
Chicago PMI (9:45am)
Consumer Sentiment (10:00am)