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Italy industrial investment seen falling -report

ROME: Italian industrial companies see the volume of investments falling 0.6 percent this year compared with 1995 when it grew 17.8 percent, a study by state research body Isco showed.

The six-monthly report said estimates of 1996 investment "seem to reflect a cautious stance while awaiting a clearer picture of the domestic and international economy."

For small and large companies, Isco forecast investment volumes growing by 4.2 and 5.8 percent respectively but falling by 6.4 percent for medium-sized enterprises.

Investment growth of 26.5 percent was expected in base industries like the chemical and steel sectors but only of 1.3 percent in the mechanical industry and transport sector.

In all other sectors, investment was seen falling with the heaviest drop of 17.9 percent in the transformation of consumer goods, Isco said.

Some 35 percent of capital account spending, against 34 percent in 1995, would go towards expanding the productive base of companies in line with already established plans.-Reuter