§ Mr. Parkasked the Secretary of State for Industry what is the estimated capital expenditure by all manufacturing industry for 1980; how it compares with the previous two years; and what is the estimated effect of this expenditure on the economy.
§ Mr. David MitchellThe Department's survey of manufacturers' investment intentions, published at the end of May, indicates a fall in the volume of capital expenditure in 1980 of 8 to 12 per cent. below the 1979 level of £3,858 million at 1975 prices. On present estimates, the 1979 level was virtually unchanged from the 1978 level of £3,853 million. The central estimate for 1980 is £3,450 million. When estimates for assets leased by manufacturers from the service industries are taken into account the probable fall between 1979 and 1980 is moderated to 6 to 9 per cent.
The rate of new investment in manufacturing is an important, though unquantifiable, factor in contributing towards the growth of the economy, although the use to which we put that investment is equally important. Surveys show the latter to be less good overall in the United Kingdom than in our main industrial competitors.