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05/08/2008 Investment Commentary, 2008 Next due: April 2009
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Capital Investment Expected to Increase in 2008


The latest Public and Private Investment (PPI) intentions survey, released in February 2008, indicates about $4.6 billion of planned expenditures for 2008 – representing a 15.0% increase over 2007. 

The increase in expected capital spending in 2008 is mainly due to a large increase in construction spending. Construction spending is expected to increase by 20.8% over 2007 and machinery and equipment spending is expected to increase by 1.4%.

On an industry basis, the most significant contributor to the expected rise in investment is a $504.3 million increase in mining and oil and gas extraction spending. Other notable expenditure increases are expected in: housing, manufacturing and public administration.

Industries expected to show significant investment decreases in 2007 include transportation and utilities.

Capital Expenditures - Newfoundland and Labrador ($ millions)

Industry 2007 2008  Actual Change %  Change
Agriculture, Forestry, Fishing & Hunting 43.8 41.6 -2.2 -5.0%
Mining & Oil & Gas Extraction 1,177.7 1,682.0 504.3 42.8%
Utilities 149.3 132.9 -16.4 -11.0%
Construction 53.7 53.8 0.1 0.2%
Manufacturing 147.1 195.6 48.5 33.0%
Trade 176.3 172.6 -3.7 -2.1%
Transportation 172.0 142.3 -29.7 -17.3%
Information & Cultural Industries 122.0 114.5 -7.5 -6.1%
Finance, Insurance and Real Estate 245.9 242.6 -3.3 -1.3%
Educational Services 77.6 80.9 3.3 4.3%
Health Care & Social Assistance 76.4 75.5 -0.9 -1.2%
Public Administration 389.3 431.8 42.5 10.9%
Housing 1,141.0 1,209.9 68.9 6.0%
Other Industries 67.7 71.7 4.0 5.9%
TOTAL 4,039.8 4,647.7 607.9 15.0%
Source: Statistics Canada
Note:  2007 is preliminary actual data; 2008 is intentions data.


Statistical Reference: Statistics used in this analysis were the latest available at the time of writing. For the latest in investment statistics visit the Newfoundland & Labrador Statistics Agency .

Economic Research & Analysis Division, Department of Finance - (709) 729-3255 - infoera@gov.nl.ca



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