TechFlow news, January 16 — ARK Investment CEO Cathie Wood released her 2026 economic outlook report, highlighting that the U.S. economy is experiencing a "wound-up spring effect." Despite continued GDP growth, housing, manufacturing, and non-AI capital expenditures have entered rolling recessions. Wood forecasts a strong economic rebound in the coming years driven by regulatory easing, tax reductions, and declining inflation and interest rates. The report emphasizes that innovation platforms such as AI, robotics, and blockchain are driving capital expenditures to historic highs, potentially triggering the strongest capital expenditure cycle in history.
Wood expects non-farm productivity growth to accelerate to an annual rate of 4–6%, with inflation significantly declining, possibly even turning negative. Data center system investments surged 47% in 2025 and are projected to grow another 20% in 2026. The commercialization of AI technology will continue to accelerate, enabling enterprises to optimize operations and generate greater value.
