Plant and equipment expenditures Essay

BUSINESS plans to spend $333.4 billion for new plant and equipment in
1985, 8.4 percent more than in 1984, according to the survey conducted
in late October and November (tables 1 and 2, and chart 5). The latest
estimate for 1984 spending is $307.6 billion, 14.3 percent more than in
1983, and is essentially unchanged from that reported in September for
the survey conducted in lae July and August.



Real spending–capital spending adjusted to remove price
changes–is estimated to increase 6.8 percent in 1985. The latest
estimate of real spending for 1984 indicates an increase of 13.3 percent
from 1983; real spending decline 3.6 percent in 1983 (tables 2 and 3).
Estimates of real spending are computed from the survey data on
current-dollar spending plans and from estimated capital goods price
deflators prepared by BEA. The laest deflators developed by BEA
indicate that capital goods prices will increase 1.5 percent in 1985,
following a 0.8-percent increase in 1984; capital goods prices declined
1.3 percent in 1983.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now



Current-dollar spending in the third quarter of 1984 increased 3.4
percent, to an annual rate of $313.1 billion, following a 3.3-percent
increase in the second quarter; third-quarter spending was 1.0 percent
lower than planned spending reported 3 months ago. Plans reported in the
latest survey indicate a 2.6-percent increase in the fourth quarter, and
increases of 5.1 percent and 2.1 percent in the first and second
quarters of 1985, respectively.


Real spending increased 3.1 percent in the third quarter of 1984,
following a 2.6-percent increase in the second quarter. Estimates
indicate a 2.3-percent increase in the fourth quarter, a 4.9-percent
increase in the first quarter of 1985, and a 1.7-percent increase in the
second.



Manufacturing Programs



Manufacturing industries plan an 11.6-percent increase in
current-dollar spending in 1985, to an annual rate of $146.2 billion;
the latest estimate of spending for 1984 indicates an increase of 17.5
percent from 1983. Durable goods indusries plan a 13.9-percent increase
in 1985 and nondurables, a 9.5-percent increase. In durables, the
largest increases are planned in motor vehicles, 30.0 percent; iron and
steel, 19.6 percent; and electrical machinery, 15.5 percent. In
nondurables, the largest increases are planned in food-beverage, 17.6
percent; rubber, 15.6 percent; and paper, 13.6 percent. A decline of
5.3 percent is planned in textiles.



Current-dollar spending in manufacturing increased 5.3 percent in
the third quarter of 1984, to an annual rate of $134.5 billion,
following a 4.0-percent increase in the second quarter. Durable goods
industries increased spending 8.7 percent in the third quarter and
nondurables, 2.4 percent. Manufacturers plan a 3.4-percent increase in
the fourth quarter, and increases of 5.0 percent and 3.6 percent in the
first and second quarters of 1985, respectively.



Real spending by manufacturers is estimated to increase 9.0 percent
in 1985–10.5 percent in durables and 7.4 percent in nondurables. The
latest estimate of real spending in manufacturing for 1984 indicates an
increase of 15.6 percent from 1983.



Nonmanufacturing Programs



Nonmanufacturing industries plan a 6.0-percent increase in spending
in 1985, to an annual rate of $187.2 billion; the latest estimate of
spending for 1984 indicates an increase of 12.0 percent from 1983. The
largest increase in 1985 is planned in gas utilities, 16.6 percent.
Smaller increases are planned in “commercial and other,” 8.1
percent; railroads, 8.0 percent; air transportation, 7.0 percent; and
mining, 4.9 percent. Declines of 2.7 percent and 0.5 percent are
planned in electric utilities and “other transportation,”
respectively.



Current-dollar spending in nonmanufacturing increased 2.0 percent
in the third quarter of 1984, to an annual rate of $178.6 billion,
following a 2.7-percent increase in the second quarter. Nonmanufacturing
industries plan a 2.1-percent increase in the fourth quarter, and
increases of 5.2 percent and 0.9 percent in the first and second
quarters of 1985, respectively.



Real spending by nonmanufacturing industries is estimated to
increase 5.2 percent in 1985; the latest estimate of spending for 1984
indicates an increase of 11.7 percent from 1983. Increases in 1985 are
planned in “commercial and other,” 7.7 percent, and mining,
4.7 percent; slight declines are planned in public utilities and
transportation.

x

Hi!
I'm Heidi!

Would you like to get a custom essay? How about receiving a customized one?

Check it out