Is the global investment boom turning to bust?

Companies are scaling back their ambitions and reducing their capex spending plans, with many revising down future investments. The capex boom has fizzled out, and markets have caught on to the change.

March 18, 2023 . 10:38 AM

1 min read

Companies are reducing their ambitions and scaling back their capex spending plans, with many revising down future investments.
A global survey of purchasing managers shows a deceleration in demand for investment goods, and Goldman Sachs' capex tracker indicates close to zero growth in businesses' outlays.
Three potential explanations for the end of the capex boom are less cash to burn, better global economic conditions, and the assumption that pandemic lifestyles would last forever.
Markets have caught on to the change, and share prices of companies that usually do well when capital spending is high have fallen back.
The capex boom has fizzled out, and real-terms spending is expected to fall by 1% in 2023.