Production of business equipment and capital expenditures are surging, indicating a major investment wave has begun, Treasury Secretary Scott Bessent said Tuesday morning.
“Business equipment production jumped 11% annualized in Q2 after a huge 23% gain in Q1 — the strongest back-to-back growth since 1997,” Bessent posted on X. “CapEx is up 16.6% in the first half of 2025, signaling a major investment wave underway.”
Data from the Federal Reserve shows that production of business equipment rose to its highest level in nearly three years in June, making it the second-best month since before the pandemic struck. The all-time high in monthly spending was in April of 2018.
In an interview on Fox Business’s “Mornings with Maria,” Bessesnt credited the One Big Beautiful Bill’s tax cuts, reshoring due to tariffs, and the AI boom. He called out the restoration of full expensing of capital investments as particularly helpful.
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