The Wall Street Journal reported if 2013 was the year of dividends and buybacks, 2014 could be the year of capital spending.

After a year of anemic expenditures on new factories and equipment, more companies say they are ready to plow money back into their businesses.
The change in attitude has been inspired largely by the strengthening U.S. economy as well as pressure from long-term investors, WSJ said.

Stock analysts expect capital spending to climb 6% this year, according to market-data provider FactSet, after rising roughly 1% to $613.4 billion in 2013. By contrast, corporate spending on share buybacks rose 23% last year to $477.3 billion and dividend payments increased 14% to $1.32 trillion, according to WSJ.

But broader economic indicators suggest that U.S. companies are primed to expand. The Federal Reserve reported last month that the nation’s industrial companies were producing at about 78.8% of their capacity in February. That benchmark reflects the amount of slack across industries. A rate of 80% or higher signals companies are ready to expand, WSJ reported.

To view the full Wall Street Journal report, click here.