U.K. capital spending is up after lean years

Abstract

After four years of cuts in spending, the British chemical industry's capital spending is picking up, reports the U.K.'s Chemical Industries Association (CIA) in its annual Investment Intentions Survey. Capital spending for this year is forecast at $3.16 billion, a 6.2% increase after inflation from spending last year. Spending in 1994, $2.88 billion, was down that same percentage from 1993, in constantcurrency terms. Moreover, a further increase in spending is expected in 1996, and that level$3.52 billionlikely will be maintained in 1997. CIA's survey asks chemical companies about their intentions to make capital investments this year and in the coming two years. According to CIA Senior Economist Keith Wey, last year's survey predicted that spending for 1995 would be $3.06 billion and for 1996, $2.83 billion. With the economy and corporate confidence picking up, however, companies this year estimated capital spending at $3.16 billion and upped the estimate for 1996 to $3.52 billion. What's more, ...