P.M. BRIEFING : Businesses to Raise Spending

Businesses plan to increase their spending for new plants and equipment by an estimated 2.4% next year, the lowest spending level in four years, the Commerce Department said today.

The level of capital spending, an indication of confidence among the nation’s business sector, is the lowest since 1986 when spending declined 3.1%.

Businesses plan to spend $547 billion on new plants and equipment next year.

Concern about the economy is slowing business expansions during the fourth quarter. Overall, capital spending increased 5.2% this year to an estimated $534 billion from $507 billion last year. The government said this year’s figures reflect a downward revision from the planned increase of 5.4% reported in September.

Manufacturing industries plan to boost spending 0.7% next year after a 4.6% increase this year. Companies that make durable goods plan to cut spending 0.8% next year.