US: GDP is buoyant, but not productive investment

Over the past two years, as the monetary policy stance has turned more restrictive, financing conditions for US companies have tightened. Capital and debt issuance have fallen sharply, as has bank lending. While real GDP growth remains robust, this should not mask the marked slowdown in productive investment. Corporate spending on structures is still solid, but spending on equipment and intellectual property products is not. The latter have a major influence on the ups and downs ...