Elevated Capital Spending Forecast

Fitch Ratings announced on Tuesday that corporate capital expenditure (capex) in the United States is projected to remain elevated through 2026. This surge is attributed to the booming demand for artificial intelligence (AI), escalating energy requirements, and recent executive orders.

Projected Capex Growth

The agency highlighted that for over 700 North American companies, capex as a percentage of revenue is expected to rise to 7.7% in 2025 from 7.2% in 2024, maintaining a robust 7.4% through 2026.

Utility Sector Leads the Charge

Fitch pointed out the utility sector as the frontrunner in capital investment, noting its rapid growth. "Beyond modernizing the grid and transitioning to clean energy, the power industry is expanding generation capacity to cater to the surging energy demands of data centers," the agency explained. It has consequently revised its capital spending estimates for the sector upwards by 15%-20% this year, largely due to the heightened demand from data centers.