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Corporate America Is Investing, But Tax Cuts Aren't Top Reason

  • ISM survey shows just 14% of factory respondents cite tax law
  • Most say general business outlook is driving capital spending

Corporate America is stepping up its investment plans this year, but the main reason may come as a surprise. An improved business outlook -- rather than the Trump administration’s tax cuts -- is driving companies’ decisions.

About a third of purchasing and supply executives say they’ve recently boosted their capital spending plans for the next 12 months, according to the Institute for Supply Management’s latest semi-annual forecast, released Monday. Within the share that said they’re ramping up their investment plans, the recent tax overhaul was cited as the reason by just 14.4 percent of respondents at factories and 18.6 percent at service providers.