Companies have begun reinvesting in new equipment and infrastructure, according to a recent Bloomberg Businessweek report.
Manufacturing, which comprises nearly 11 percent of the economy, has benefited from recent business spending, according to the report. Economic gains have businesses feeling more confident in rebuilding their infrastructure, with many choosing to purchase items like new computers, software and business projectors, to help them with future projects.
“We continue to have an economic expansion that's moderate overall and uneven,” said Richard Dekaser, the chief economist at Woodley Park Research, Bloomberg Businessweek relays. Dekaser also said that the factory sector “is helping to offset the weakness” in the housing market.
Although businesses may be on their way out of the economic drudge, the housing market has suffered a recent setback.
The Department of Commerce released figures on Wednesday, showing that the construction of new homes dropped 10 percent in May after a federal tax credit for buyers expired, the Los Angeles Times relays. The recent drop was the first decline experienced by the housing market since February.
