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Capital Spending

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Capital Expenditure
Payments made in cash or cash equivalents over a period of more than one year. Capital expenditures are used to acquire assets or improve the useful life of existing assets. An example of a capital expenditure is the funding to construct a factory. In accounting, capital expenditures must be capitalized; that is, the expenditure is recognized on a balance sheet gradually over the course of an asset's useful life. Capital expenditures are recorded as liabilities on a balance sheet. They are also called capital outlays. See also: Capital asset.

capital spending
Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years.


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Even if the economy stabilizes this summer, as is generally expected, capital spending will most likely be a major drag on growth for the rest of the year.
Capital spending will decrease 18% this year as a result of leading chipmakers easing up on expansion.
Chemical firms will increase their capital spending 8.
 
 
 
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