BANK OF FINLAND PREDICTS 1987 INVESTMENT SURGE
Finnish industrial investment will rise
10 pct in 1987 from last year reaching its highest rate since
1980, the Bank of Finland's two year survey predicted.
    Investment will centre on machinery and equipment, with a
rise of almost 25 pct.
    There will almost be a rise of 20 pct in investment in
manufacturing, with notable growth in the paper industry,
chemicals, building materials and consumer goods sectors.
    The rate of growth will fall back in 1988 with spending
remaining at the same level as this year, the survey said.
    Research and development spending will show a rise of over
three billion markka, representing 18 pct of investment in
1987.
    Finland's investment rate is high internationally as the
share of capital intensive industries is relatively large.
    "But the quicker growth of Finnish industrial production is
also an indication investments are promoting a renovation and
increase in production capacity," the survey said.
    Manufacturing industry would have a capacity use rate of 86
pct at the end of 1987, one pct above the rate at the start of
the year. This was expected to grow further next year, it said.
 REUTER
