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Article: Capital spending decline puts crimp on economy
- Article from:
- THE JOURNAL RECORD
- Article date:
- September 21, 1998
- Author:
CopyrightCopyright 1998 The Journal Record. Provided by ProQuest LLC. (Hide copyright information)
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Having just built one new factory and expanded another, Chrysler
is cutting back on capital investment. AT&T has also shaved its
capital spending, but for a different reason: It purchased an
existing phone network, rather than spending the money to build a new
one. And Motorola, its sales hurt by the Asian crisis, is postponing
investments in new factories and machinery, even going so far as to
halt construction of a massive $3 billion semiconductor plant in
Virginia.
Capital spending, a pillar of the nation's strong economic growth
over the last three years, is beginning to fade. First falling
exports, then falling stock prices and now a slowdown in capital
spending are chipping away at ...