Factories across New York State and service firms in the metropolitan region are unlikely to go on a spending spree this year for buildings, equipment, computers and other capital goods, according to two surveys.
The Federal Reserve Bank of New York projected this week that capital expenditures by manufacturers would be down 4 percent this year compared with 2015’s median of $300,000 per firm.
Capital spending by retailers and other service firms in the New York area will remain steady, year over year, at a median of $250,000, the bank said.
The New York Fed, in separate polls earlier this month, surveyed about 100 plants throughout the state and service firms on Long Island, in New York City and its northern suburbs.
“Although overall capital spending was expected to be flat to lower, respondents planning to hike overall capital spending in 2016 outnumbered those who expected to reduce spending — by a margin of 40 to 23 percent among service sector firms, and 37 to 29 percent among manufacturers,” the bank said.
Among factories, the most widespread planned spending increases between 2015 and this year were for non-computer-related equipment and computer software. Among service firms it was computer hardware and software.
The bank said, “Despite the sharp drop in energy prices over the past year, a surprisingly large proportion of manufacturers still cited a need for energy-saving equipment as a factor driving capital spending.”