Industry Finds Room To Grow

It was a long time coming, but America's capital spending binge is finally starting to pay off big in terms of rapid growth of productive capacity. According to the Federal Reserve, manufacturing capacity is currently expanding at a 4.3% annual rate--the fastest pace recorded since the late 1960s. The latest reading marks a sea change from the Fed's previous estimates of capacity growth, which clocked in at 3% last year and averaged only about 2% a year from 1987 through 1993.

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