Economic Growth Will Be Slower, Survey Finds
Capital spending, after adjustment for inflation, is expected to rise by 7.6% in 1990, a sharp increase from the 4.9% rise estimated three months ago, the Commerce Department said Wednesday.
However, the projected increase for this year would still be down from the 8.6% gain in spending by businesses on plant and equipment in 1989, the department said.
The January-March survey of spending plans by businesses was another sign that economic activity would continue its growth but at a slow pace after more than eight years of economic expansion.
Companies plan to increase capital spending after adjusting for inflation to $503.4 billion in 1990, a 7.6% gain over last year.
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