The Financial Post reports in its Friday, Aug. 4, edition that chief executives across the United States are opting to reinvest more of their profits in expansion projects rather than handing the money back to shareholders. A Bloomberg dispatch to the Post reports that the shift in cash allocation has been a hallmark of the second quarter earnings season. With tightening credit muting share repurchases, and the siren song of artificial intelligence blaring everywhere, outlays for investment on plants and technology have blossomed. The median company pushed up capital expenditures by 15 per cent in the period, with three-quarters announcing programs that topped analyst estimates in July, data from Bank of America show. By contrast, buybacks among corporate clients have been tracking below seasonal trends since May. More broadly, net repurchases plunged 36 per cent from a year ago among S&P 500 firms that announced financial results. The reluctance is also on display via planned buybacks, which according to Birinyi Associates have fallen 15 per cent year-to-date. Goldman Sachs Group strategists forecast S&P 500 buybacks will trail capital expenditures this year for the first time since 2020.