Capital Spending Slows: Spending by businesses to...

Capital Spending Slows: Spending by businesses to expand production is rising at the slowest pace in five years as the recession pinches profits and clouds prospects for economic recovery, the Commerce Department said. Companies intend to boost capital spending by only 3.2% after accounting for price changes this year, according to a survey conducted by the department in the first quarter. That would be the weakest rate of increase since 1986, when capital spending fell 3.1%. Capital spending includes investment by manufacturers, utilities and transportation companies to improve their plants and facilities.