The surge of corporate buybacks has helped boost the rebound of the US economy.

As U.S. stocks suffered their worst weekly decline since October 2020 last week, American companies were among the biggest buyers on the dip. With the S&P 500 index falling for a fourth straight week, Goldman Sachs’s client execution desk received a record number of buyback orders, with trading volumes surging to 2.1 times the daily average of last year. Corporate clients at U.S. Bancorp also went on a buying spree, with their buyback pace accelerating and surpassing seasonal levels for the 22nd straight week.

The buyback frenzy coincided with a market recovery, with the S&P 500 index recouping more than half its summer losses. In the backdrop of renewed concerns about economic growth and stock valuations, corporate buybacks have become a key support for the market.

As the second-quarter earnings season draws to a close, companies are emerging from the lull of buybacks. From plans announced so far, their demand is set to remain robust, good news for both large and small investors who have been scooping up stocks on the downturn.

“You’re seeing a lot of companies announce buybacks and then you see the actual execution, and it shows that American companies are still healthy,” said Jeff Rubin, president of Birinyi Associates. He added that 775 companies have announced buyback plans since January, on track to reach at least a 11-year high.

Birinyi’s data shows that U.S. companies have announced plans to buy back $82.6 billion of stock this year, up 15% from a year ago. Rubin estimates that actual buyback volume in 2024 could exceed $100 billion.

However, Goldman’s trading desk is less optimistic, expecting full-year buyback volume of $96 billion. But if companies follow the historical pattern of 21% of full-year buyback volume in August and September, the daily buying power in the coming weeks would be $4.75 billion.

Buybacks have come under fire from lawmakers and academics, who say the money would be better spent promoting long-term growth, such as on employee benefits or equipment upgrades. A 1% tax on buybacks went into effect last year.

But fund managers have welcomed the buyback trend. U.S. Bancorp’s latest monthly survey found that for the first time since 2021, investment experts said chief executives should prioritize shareholder returns over capital spending, rather than the other way around.

In the survey, 28% of fund managers urged companies to boost returns through buybacks, dividends or debt financing acquisitions, the highest level since November 2013. At the same time, only 24% of respondents wanted CEOs to increase capital spending, the lowest level since November 2021.