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Capital Spending Boom Helps Raise Productivity, Contain Costs
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American businesses are ramping up technology investment and other capital spending as they emerge from the pandemic. If sustained, that investment boom could boost productivity and living standards and counteract inflation pressure.
Private nonresidential business investment grew 7.4% in 2021 from the previous year after adjusting for inflation, the fastest pace since 2012 and a strong bounceback from the 5.3% decline in 2020.
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