asked the Minister for Finance if he will make a statement on the latest figures for growth of investment in the manufacturing industry; and if he will make a statement on the trend indicated.
Written Answers. - Manufacturing Industry Investment.
18.
The indicators available suggest a continuing upward trend in manufacturing investment this year.
Imports of capital goods, which are a good pointer to industrial investment, increased by over 12 per cent in 1987 and a similar rate of increase is being maintained so far in 1988.
The volume of investment in machinery and equipment increased by 3.5 per cent in 1987. I expect growth this year to be as good or better. This improving trend is expected to continue in 1989.
IDA grant-aided fixed asset investment increased by 14 per cent to £302 million in 1987, from £265 million in 1986, and a similar increase is expected in 1988.
The combination of significantly lower interest rates, improved international competitiveness, and a resurgence in business confidence have contributed to this upward trend. The overall trend suggests that a significant up-turn is occuring in manufacturing investment in line with the objectives of the Programme for National Recovery.