We have more research from the IMF on business investment. Kruggers makes comment and obviously will do it far better than I.
The research shows things that affect demand have had the most significant on business investment. Namely household deleveraging and fiscal consolidation.
The business confidence fairy is nowhere to be seen.
One of the authors is Daniel Leigh who was responsible for the demolishing of the Alesina and Agdana hypothesis of expansionary austerity.
Those who champion classical economics have no evidence to support their ideology if they ever had. Never mind those policies brought Hitler to power!