Business spending slowed at year's end, but it may well pick up this year.
One reason for the slowdown is a bottleneck in producing farm equipment, says Mr. Sohn. 鈥淧eople are on a waiting list for farm combines,鈥� he says. 鈥淚n some cases, there are enough tractor bodies, but they can鈥檛 get the huge tires.鈥�
The main reason for the boom in spending at places like Deere & Co: Corn and wheat prices are high. 鈥淓very farmer wants to replace his equipment,鈥� says Sohn.
Other business spending is expected to revive as a result of the tax package Congress passed at year's end, which allows businesses to write off 100 percent of investments made this year.
Rachelle Bernstein, tax counsel at the National Retail Federation in Washington, says she has received a lot of calls from retailers who are considering remodeling their stores as a result of the tax change. 鈥淲e see a lot of investment coming from retail,鈥� she says.
