Image Source: Pexels
Let’s hope capex investment in data centers is sustained.
Figure 1: Nonresidential fixed investment (blue) GDPNow of 8/7 (light blue square), nonresidential fixed investment minus data center capex (dark red), GDPNow of 8/7 (red square), all in bn.Ch.2017$ SAAR. Annual data center capex interpolated using cubic spline. Assumes information processing equipment prices rise by 0.9% in Q3. Source: BEA, Atlanta Fed, JPMorgan, and author’s calculations.
The data center investment series is based on JP Morgan projections.
Source: JPMorgan
Should the Magnificent 7 stocks deflate, capex is likely as well.
More By This Author:
Stock Market Capitalization Ex-Magnificent 7Equipment And Structures Investment
If You Believe The CPS Employment Series Turns Down Before The CES, Be Afraidb
Comments
Log in or sign up to join the conversation.