Capital Spending to Rise Slightly: Spending by...
From Times Staff and Wire Reports
Capital Spending to Rise Slightly: Spending by businesses to expand production is expected to rise at a slim annual rate of 5.1% this year after inflation, less than the estimated 5.5% foreseen three months ago, the Commerce Department said. While the projected investment would top last year’s record $501.6 billion, the 5.1% increase would be less than half of the 10.4% spending gain in 1989 and the lowest since a 3.1% advance in 1987. Capital spending rose 9.5% in 1988. Analysts said the survey shows businesses remain leery of a soft economy and worry about falling profits.
