Noodles to chips: Global capex booms as companies prep for post-Covid era

Corporate capital expenditure will jump globally by 13% this year, according to S&P Global Ratings, with growth in all regions and broad sectors.

Global companies from noodle makers to semiconductor giants are spending on new plants and machinery in ways they haven’t done for years.

On the supply side, blockages brought on by the Covid-19 pandemic are forcing businesses to invest in new production facilities; calls for a cleaner environment are spurring spending on electric vehicles, batteries and alternative energy; and the big semiconductor crunch has prompted a wave of investment. 

On the demand side, pent up consumer spending is convincing executives that capital is worth outlaying -- a sign that business is buying into the world’s economic recovery prospects even as the