Worn Out Machines as Leading Indicator

(Reuters) – Delivery trucks wear out, computers break down, software becomes outdated — and finally businesses have to start investing in new equipment. Companies that want to remain competitive have to start spending again as an economy slowly recovers.

Four years after the downturn began, the replacement cycle shows signs of kicking into a higher gear in the United States even among small businesses, and it could give an unexpected boost to growth and employment this year.

Read the rest here.