Firms to Cut Capital Spending

U.S. businesses, beset by a sluggish economy and tax-law uncertainty, have reduced their investment spending plans by 2.5% for this year, the biggest cut since the last recession, the government reported today.

The Commerce Department said a survey found that businesses, after adjusting for inflation, plan to spend $376.47 billion this year on capital improvement projects. Economists blamed the weak economy, cutbacks in oil and gas drilling, and uncertainty over changes in the tax law.