Here's why we could be at the start of a productivity boom

Business spending on research and development is surging.

In an email Tuesday, Deutsche Bank's Torsten Sløk included the chart below that shows private sector spending on research and development is growing at the fastest rate since the recession.

"[M]ore R&D normally means more capex and higher productivity," Sløk wrote.

"Note also how R&D is weak in the first few years after a recession and then begins to take off as corporate confidence comes back."

Deutsche Bank