Reports that US capital spending is picking up

The theme in capex has been 'serial disappointment' to use the Bank of Canada's term. They have lamented that the conditions have been right for companies to begin spending for years but it has yet to materialize.

Now the US may be taking the lead, according to a report cited in the WSJ.

All told, capital investment rose 15% in the fourth quarter to a five-year high of $166 billion, according to an analysis of capital-spending figures for 423 large companies from financial-data firm Calcbench-the third-fastest rise since early 2010.

The flipside is that energy companies are cutting investment because of low oil prices, something the Fed touched on yesterday in the Beige Book.

Unfortunately, the report cites that some capex is focused on low-end consumers. It noted that Dollar Tree is spending more and Macy's has invested $100 million in a bargain store formal. They also note that military capex has grown and that's not a signal either way on the real economy.