Economy Gets Tech-Spending Boost

Good Morning Team!

Here’s an interesting story from today’s WSJ:…

In case you don’t have a subscription to the newspaper, here are a few excerpts:

Spending on technology soars as businesses adjust to higher wages, remote work.

American businesses are ramping up technology investment and other capital spending as they emerge from the pandemic.

Spending for software…rose 14% in 2021 from the previous year…grown vastly more than others…as work is increasingly done remotely.

In particular, new technology spending could occur in nontech sectors…spreading productivity gains more widely.

Another driver is the move to remote work for legions of white-collar workers whose offices were shut down at the height of the pandemic. Firms have invested in online tools and software to allow their employees to work from home.

…many workers will continue working from home once the pandemic is over.

…the increase in business spending suggests “more automation and productivity-enhancing replacement of workers by machines.”