Budgets for Capital Spending Rise: U.S. companies’...

Budgets for Capital Spending Rise: U.S. companies’ appropriations for spending on new plant and equipment rose 33% in the last quarter of 1988 from the third quarter, the Conference Board said in a report for release today. The budget authorizations rose to $53.7 billion in the fourth quarter from $40.3 billion in the preceding quarter and $30.8 billion in the fourth quarter of 1987, the New York-based, business-supported research organization said. Appropriations are considered a good indicator of how high capital spending will be. They are the first step, preceding the ordering of equipment, the letting of construction contracts and actual spending. The petroleum industry led all sectors with a 157% increase in appropriations from the preceding quarter.