JAPANESE CAPITAL SPENDING GROWTH EXPECTED TO SLOW
Japanese private sector investment in
plant and equipment is expected to grow a real 0.9 pct in 1987,
after an estimated 5.5 pct rise last year, the Long-Term Credit
Bank of Japan Ltd said.
    It said its survey of 1,169 companies at the end of
February showed that manufacturing industry investment will
decline eight pct this year, while non-manufacturing will
increase 5.7 pct. It did not provide figures for 1986.
    The bank partly blamed the expected deline in manufacturing
investment on the uncertain outlook for demand in those
industries.
    The Long-Term Credit Bank also said that steelmaking and
shipbuilding companies are putting a squeeze on maintenance and
repair costs for their facilities and equipment.
    In non-manufacturing industry, growth in investment is
expected to be particularly marked in the wholesale and retail
store area, 12.4 pct, as new department stores and supermarkets
are built and old ones are remodelled.
    The Bank though expressed concern at a slowing of corporate
investment that would help restructure the Japanese economy and
urged government deregulation and other action to offset this.
 REUTER
