about 7.6 per cent below the level of 1966. However, this ota * somewhat misleading. The cutback is concentrated on buildings, it being down 28.9 per cent, while investment on plant and machinery 1s
i ightly by 1.2 per cent. ” ee eee cat te sncllse in total investment is, predictably, given as reductions in home demand and restriction of cash eres An unusual feature revealed by the survey was that it is mainly medium and large sized firms that are cutting back. In previous recessions since the war it has usually been the smaller firms that have made adjustments in their investment plans. The significance of this is that many of the large firms’are key units, and the repercussions of their cutbacks will be felt in the economy for some time to come It is a further indication of a loss of confidence of the employers in the future of the economy.
Perhaps even more significant from the point of view of the trade unions is the maintenance cf investment in plant and machinary. This would suggest that the present recession is being used to introduce more labour saving machinary at the expense of workers.