Re demand uncertainty as a reason for lack of private capex: The key is employment; it’d be nice to know what government - state and centre - is doing different here. AI and the hype around it is affecting IT employment visibly, but also other key industries, with ripple effects outward. Companies are investing less in Human Resources, feeling they can automate their way to reduced costs.
I think if some serious attention and money and policy actions - and there are many possible - were directed at this problem, we will see optimism revive, demand surface, & private sector investment increase.
That's a very valid way of looking at things. Demand is hugely driven by people's ability to spend which in turn is a function of their employment. These are all structural problems with very difficult answers.
Re demand uncertainty as a reason for lack of private capex: The key is employment; it’d be nice to know what government - state and centre - is doing different here. AI and the hype around it is affecting IT employment visibly, but also other key industries, with ripple effects outward. Companies are investing less in Human Resources, feeling they can automate their way to reduced costs.
I think if some serious attention and money and policy actions - and there are many possible - were directed at this problem, we will see optimism revive, demand surface, & private sector investment increase.
That's a very valid way of looking at things. Demand is hugely driven by people's ability to spend which in turn is a function of their employment. These are all structural problems with very difficult answers.