Printer Friendly

Plant and equipment expenditures.

Plant and Equipment Expenditures: * Quarters of 1985 * First and Second Quarters of 1986 * Year 1986

BUSINESS plans to spend $393.5 billion for new plant and equipment (P&E) in 1986, 2.4 percent more than in 1985, according to the BEA survey conducted in late October and November (tables 1 and 2, and chart 6). The latest estimate for 1985 spending is $384.2 billion, 8.4 percent more than in 1984, and is little changed from that reported in September for the survey conducted in late July and August.

Real spending--capital spending adjusted to remove price changes--is estimated to decline 1.0 percent in 1986. The latest estimate of real spending for 1985 indicates an increase of 5.6 percent from 1984; real spending increased 15.3 percent in 1984 (tables 2 and 3). Estimates of real spending are calculated from survey data on current-dollar spending and from estimated capital goods price deflators developed by BEA. The capital goods deflator for "all industries" is projected by BEA to increase 3.4 percent in 1986, following a 2.7-percent increase in 1985; the deflator increased 0.9 percent in 1984.

Current-dollar spending in the third quarter of 1985 increased 0.3 percent, to an annual rate of $388.9 billion, following a 4.5-percent increase in the second; third-quarter spending was 0.2 percent lower than anticipated in the previous survey. Plans reported in the latest survey indicate little change in the fourth quarter and increases of 3.4 percent and 1.0 percent in the first and second quarters of 1986, respectively.

Real spending declined 0.9 percent in the third quarter of 1985, following a 4.4-percent increase in the second. Estimates indicate a 0.8-percent decline in the fourth quarter, a 2.4-percent increase in the first quarter of 1986, and little change in the second.

Manufacturing Programs

Manufacturing industries plan current-dollar spending of $152.3 billion in 1986, little change from 1985; the latest estimate of spending for 1985 indicates an increase of 9.8 percent from 1984. For 1986, a 2.5-percent decline in durable goods industries offsets a 2.1-percent increase in nondurables. In durables, large planned declines for 1986 in electrical machinery (10.2 percent) and blast furnaces-steel works (6.8 percent) more than offset small planned increases in motor vehicles (3.7 percent), aircraft (3.0 percent), and "other durables" (2.3 percent). In nondurables, planned increases for 1986 in rubber (6.3 percent), "other nondurables" (4.5 percent), paper (3.6 percent), and petroleum (3.4 percent) more than offset planned declines in textiles (11.8 percent), chemicals (0.7 percent), and food-beverage (0.2 percent).

Current-dollar spending in manufacturing was little changed in the third quarter of 1985, at an annual rate of $154.0 billion, following a 6.0-percent increase in the second. Manufacturers plan a 1.1-percent increase in the fourth quarter, a 0.6-percent decline in the first quarter of 1986, and a 2.9-percent increase in the second.

Real spending by manufacturers is estimated to decline 4.0 percent in 1986--6.2 percent in durables and 1.8 percent in nondurables. The latest estimate of real spending in manufacturing for 1985 indicates an increase of 6.7 percent from 1984.

Nonmanufacturing Programs

Nonmanufacturing industries plan current-dollar spending of $241.2 billion in 1986, 4.1 percent more than in 1985; the latest estimate of spending for 1985 indicates an increase of 7.5 percent from 1984. Planned increases for 1986 in air transportation (19.3 percent), "commercial and other" (7.7 percent), gas utilities (3.0 percent), and railroads (2.3 percent) more than offset planned declines in electric utilities (7.0 percent), mining (6.2 percent), and "other transportation" (2.0 percent).

Current-dollar spending in nonmanufacturing increased 0.6 percent in the third quarter of 1985, to an annual rate of $234.9 billion, following a 3.5-percent increase in the second. Nonmanufacturing industries plan a 0.7-percent decline in the fourth quarter, a 6.0-percent increase in the first quarter of 1986, and little change in the second.

Real spending by nonmanufacturing industries is estimated to increase 0.9 percent in 1986; the latest estimate of spending for 1985 indicates an increase of 4.8 percent from 1984. Estimated increases for 1986 in "commercial and other" (3.3 percent) and transportation (1.2 percent) are nearly offset by estimated declines in mining (8.7 percent) and public utilities (6.2 percent).
COPYRIGHT 1985 U.S. Government Printing Office
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1985 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:quarters of 1985; first and second quarters of 1986; year 1986
Author:Seskin, Eugene P.; Sullivan, David F.
Publication:Survey of Current Business
Date:Dec 1, 1985
Words:748
Previous Article:Revised estimates of the national income and product accounts of the United States, 1929-85: an introduction.
Next Article:1982 benchmark survey of U.S. direct investment abroad.
Topics:


Related Articles
Plant and equipment expenditures, of the four quarters of 1985.
Capital expenditures by majority-owned foreign affiliates of U.S. companies, 1985 and 1986.
Capital expenditures by majority-owned foreign affiliates of U.S. companies, 1986.
Plant and equipment expenditures, first and second quarters and second half of 1986.
Plant and equipment expenditures, the four quarters of 1986.
Capital expenditures by majority-owned foreign affiliates of U.S. companies, 1986 and 1987.
Plant and equipment expenditures: quarters of 1986, first and second quarters of 1987, year 1987.
Plant and equipment expenditures, first and second quarters and second half of 1987.
Plant and equipment expenditures, the four quarters of 1987.
Plant and equipment expenditures.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters