The Week AheadBy
CAPITAL SPENDING Wednesday, Apr. 10, 8:30 a.m.
Nonfarm businesses probably have rethought their 1991 plans for plant and equipment spending. When the Commerce Dept. last surveyed companies in the fourth quarter, they expected to increase capital budgets by just 2.4% this year, with most of the outlays concentrated in the first half. But the latest survey, taken in January and February, will probably show that the recession and the gulf war have led many businesses to scale down or postpone their capital investment plans. These cuts could mean that capital spending may decline for all of 1991, after accounting for price changes. In 1990, spending was slated to rise 5.2%, or 4.1% after inflation adjustments.
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