US Witnessing ‘CapEx Comeback’ as Investment Wave Hits Economy: Treasury

‘I think that we could see growth and productivity well in excess of 3 percent for the coming year,’ the Treasury secretary said.

Cars on the assembly line during a tour of the Tesla Giga Texas manufacturing facility ahead of its grand opening party in Austin, Texas, on April 7, 2022. Suzanne Cordeiro/AFP via Getty Images

The U.S. economy is experiencing a “CapEx Comeback” this year as private-sector investment soars, the Treasury Department said.

Capex, short for capital expenditures, refers to investments businesses make to purchase or upgrade industrial equipment, vehicles, technology infrastructure, and machinery. Economists consider capital expenditures as a gauge of the future, as companies expand capacity or bolster efficiency in anticipation of future growth.