U.S. Chemical Firms' Capital Spending Abroad To Increase

Abstract

After a number of years in the doldrums, capital expenditures by foreign affiliates of U.S. chemical companies are forecast to show a healthy increase this year, according to the Commerce Department's latest survey of spending plans for new plant and equipment overseas. The survey, based on figures gathered at beginning of 1986, indicates that such spending abroad this year will rise 22% from 1985 to almost $3.22 billion. Although that projection is down 5% from an estimate made six months earlier, the projected rate of increase is still well above the 0.5% increase actually achieved in 1985. And the 22% rise is well above the forecast for the increase in total capital spending by chemical companies in 1986, estimated at just 5.5% over 1985. It is not unusual for the estimate to fall during the year as companies face economic reality. In the 1981-85 period, only 1981 spending turned out higher than was first forecast, ...