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Business investment in the United States is on the rise. Bloomberg Markets reports that among the 130 S&P; 500 companies that have reported results for the first quarter of 2018, capital spending increased by 39 percent—the fastest growth in seven years. An increase in how much businesses are investing is good news, as business investment is a determinant of the long-term size of the economy. Increased capital expenditures can increase the size of the stock of capital, such as plants, machinery, and equipment. In the long run, a larger capital stock leads to higher levels of productivity, employment, output, and incomes.