Consumers are not the only ones to open their wallets this holiday season. Companies are expected to accelerate capital spending in the coming weeks to enjoy a tax break right through December 31.
Business investment could boost next year when the benefit is reduced by half, but surveys show companies plan to continue to devote part of their large cash reserves in new equipment to increase productivity and to replace the gear to use.
With consumer spending gains mean low income insecurity, companies could remain a reliable pillar of growth.
"Business investment was a light that shines in the economic recovery," said economist Paul Dales at Capital Economics.
Costs for building structures and equipment, and software sales increased 15% in the third quarter. Non-defense capital goods shipments excluding aircraft - a good indicator of business investment - are up about 10% this year.