In a first look at what American companies expect to spend next year on plant and equipment, the government reported Tuesday that spending would increase 5.4 percent.
The planned increase for 1994 is not adjusted for inflation. When that adjustment is made, expected spending rises 7 percent.The 5.4 percent planned increase in unadjusted capital spending follows a revised 7 percent upswing in expected spending for 1993, the Commerce Department said. Previously, the government estimated that companies would increase spending for 1993 by 7.1 percent - the largest jump in spending since 11.4 percent in 1989.
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This means companies will devote an estimated $617 billion in spending for 1994.