By Vicki Needham - 07/30/10 04:24 PM EDT
Spending by businesses on equipment and software was up by 21.9 percent in the second quarter, compared with a 20.4 percent increase during the first three months of the year.
Despite the improvement on the business side, there is still trepidation in the strength of the economy as hiring isn't picking up at a pace needed to provide consumers with confidence in the job market to begin spending again.
Today's report also showed that gross domestic product was flat in 2008 instead of growing a 0.4 percent. Growth also showed weaker gains the first quarter of 2009 with a revised rate of 5 percent instead of the previously estimated 5.6 percent, as the government revised three years of data.
Federal Reserve Chairman Ben Bernanke said recently that the strength of the economic recovery will depend on whether consumers spend and companies are willing to invest as the government's stimulus money fades out.