In an uncertain economy, equipment purchases can be less risky than new hires. Capital expenditures can also help companies deal with a tightening labor supply.
The tax and spending law, passed last summer, expands on President Donald Trump’s 2017 tax cuts, making it easier for big corporations to pay less in federal income taxes.
Economists say numbers that will be released Friday by the Bureau of Labor Statistics on unemployment and wage growth will help them get a sense of consumer’s spending power going forward.