>
> Wednesday February 14 2:07 PM ET
> U.S. Has Overhang of Capital Goods
>
> NASHVILLE, Tenn (Reuters) - The United States has an oversupply of capital
> goods that will take an indefinite period to work off before investment
> picks up again, Federal Reserve (news - web sites) Vice-Chairman Roger
> Ferguson said on Wednesday.
>
> ``Over the last few months, data on orders and shipments of nondefense
> capital goods have provided hard evidence on a slowdown in business spending
> on high-tech capital goods,'' Ferguson said in prepared remarks for delivery
> at Vanderbilt University.
>
> ``Our economy is clearly undergoing a stock adjustment to bring the supply
> and demand for capital goods in some sectors into better alignment,'' he
> said, but it was unclear how long it would take to complete the rebalancing.
>