Economists are revising forecasts and predicting a stronger economic recovery as a result of surging profits. A wide range of companies are increasing spending, giving rise to the optimism. “Companies have a lot more capital, and they’re going to deploy it for equipment and hiring rather than sit on it,” said Joseph LaVorgna, chief U.S. economist in New York at Deutsche Bank Securities. “It’s quite possible the economy produces a recovery significantly stronger than people anticipate.”
Surging profits are prompting economists to revise their estimates for growth, tilting the recovery more in the direction of a V-shape as businesses from Intel Corp. to JPMorgan Chase & Co. boost spending. Read more at Bloomberg.com
