P.M. BRIEFING : 6.5% Investment Hike Expected

U.S. investment in factories and equipment is expected to increase a revised 6.5% in 1989, slightly higher than previously estimated, the Commerce Department said today.

Based on surveys of businesses conducted in April and May, the department projected 1989 real capital spending will rise to a seasonally adjusted $451.43 billion from a revised $423.69 billion in 1988, when spending jumped a sharp 10.1%.

The department estimated in April that real capital spending would rise 6.3% in 1989, based on surveys in the first three months of the year.

Although the projection would result in the third annual increase in capital spending, the rise would be smaller than last year’s gain and appears in line with other recent government data that show the economy is slowing.