This Week In Business pected, says OBE, as compared with the 10% advance indicated in February. The upward revision results largely from increased spending programs of manufacturers and transportation firms. Motor vehicle, petroleum, and chemical companies account for most of the upward revision in manufacturing programs for plant and equipment outlays. Manufacturers are currently projecting capital outlays in 1964 at $18.5 billion, 16% above 1963's spending. Durable and nondurable
JUNE
goods producers will contribute about equally to the rise. Railroads expect their spending to be almost a third higher than in 1963, reflecting large expansions in equipment purchasing programs. Nonrail transportation firms also anticipate a sizable increase in spending of about 1 5 % . Public utilities expect plant and equipment spending to be about 7 % higher in 1964, while commercial and communications companies have programed an 8 % rise. Mining companies expect an increase of 5 % .
2 9,
1964
New plant and equipment spending by manufacturers was $17.4 billion (seasonally adjusted annual rate) in the first quarter of 1964. This was about 6 % higher than in the previous quarter. Among the nondurable manufacturing industries, petroleum refiners and food companies reported sizable increases in outlays in the first quarter of 1964. Petroleum, textile, paper, and chemical companies expect expenditures for new plant and equipment to rise further from firstquarter rates.
PRICES Industrial Chemicals
All Wholesale Commodities vs. Chemicals 1957-1959 = 100 106
» « • 1964
——1963
1957-1959 = 100 106
All Wholesale Commodities 102-
102 MM««"IIIIHHiillfc||||||i|||illl|M„.......»-»98
-
.....-•»»-..... 98-
= Chemicals and Allied Products
94
901 | D J
!
!
!
F
M
1 A
! M
!
,
J
J
A
1 S
1 O
| N
| D
Source: Bureau of Labor Statistics
1957-1959 = 100
1957-1959 = 100 106
1957-1959 = 100 106
106
102
102
102-
98
9 8 —
•
94
90
1 I I I I I I I I I I II D J F M A M J J A S O N D
90
l
I I I I I I I I I I I I
D J F M A M J J A S O N D
90
l
I I I I I I I I I I II
D J F M A M J J A S O N D
JUNE
2 9, 1964
C&EN
33
