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Capital spending forecast: $624 billion in '94.

As the U.S. economy enters a period of comfortable, sustainable growth, it appears that the expansion will stretch well into next year. At least, that's if expectations for capital spending hold true.

According to the U.S. Commerce Department's most recent survey, U.S. industries plan to spend 5.4% more in 1994 on new plant and equipment than they did a year earlier (see table). Total spending will be $624.3 billion. This annual increase comes on the heels of a 7.0% gain in 1993. Ordinarily, about two-thirds of capital spending goes toward the purchase of new equipment, while about a third goes to new physical plants.

This year the steel and electric utility industries ...

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