Economic and Business news

[yazm1991]

Originally Posted by eastwest

More than $14 Billion worth of projects are put on hold in Jordan

According to Amlak, a real-estate publication
Many of those projects never exceeded their developers vision and were only plans in Amman, Aqaba, and the dead sea.

Projects include Mansion Hills, Sienna Hills, Tilal Salem, Taameer (UAE) Towers, Sanaya Amman,
Royal Village, Beitna Project, Saraya Dead Sea, Horizon Aqaba, among others.

Source

However as the poster before said they have not been cancelled so thats a bit of good news.

[eastwest]

Actually when you think about it it's not bad news at all!
The opposite is true, Jordan is a small economy and 14 billion exceeds it's GDP, this money should be invested in infrastructure, water, roads, energy, industry, education. Not just fancy real estate projects, which if all were realized would have become a burden on the country's economy.
The only projects that still make sense in this economy slowdown are Amman's downtown regeneration project, and Abdali (since it is already U/C)

[yazm1991]

Amman Stock Exchange

Sunday’s trading value amounted to JD22.1 million spread over 15.6 million shares traded through 7,352 transactions.

The share price index closed at 2,569 points, an increase of 0.47 per cent.

Out of 157 companies whose shares were traded, prices of 83 firms rose and those of 46 entities declined.

The top five gainers were Zara Investment Holding by 5 per cent, Jordan Poultry Processing & Marketing by 5 per cent, Future Arab Investment by 5 per cent, Falcon for Investment & Financial Services by 5 per cent, and Arab Financial Investment by 4.94 per cent.

The top five losers were Afaq Holding for Investment & Real Estate Development by 5 per cent, Middle East Pharma. & Chemical Ind. & Medical Appliances by 4.96 per cent, Arab East For Real Estate Investments by 4.95 per cent, Jordan Investment & Tourism Transport (Alfa) by 4.94 per cent and Societe Generale de Banque - Jordanie by 4.86 per cent.

[yazm1991]

Amman Stock Exchange

Wednesday’s trading value amounted to JD27.3 million spread over 23.4 million shares traded through 10,222 transactions.

The share price index closed at 2,565 points, an increase of 0.38 per cent.

Out of 161 companies whose shares were traded, prices of 74 firms rose, and those of 57 entities declined.

The top five gainers were Rum Group for Transportation & Tourism Investment by 5 per cent, Comprehensive Multiple Project by 4.96 per cent, Universal Chemical Industries by 4.96 per cent, Resources Company for Development & Investment Plc. by 4.88 per cent and Specialised Investment Compounds by 4.84 per cent.

The top five losers were Al Jamil for Investments Co by 4.80 per cent, Jordan Emirates Insurance by 4.80 per cent, Middle East Pharma. & Chemical Ind. & Medical Appliances by 4.78 per cent, Al Tajamouat for Touristic Projects by 4.76 per cent and Al Januob Filters Manufacturing by 4.71 per cent.

[yazm1991]

Central Bank reviews financing conditions

The Kingdom’s economy is still affected by the fallout of the global financial crisis and economic recession, a statement by the Central Bank of Jordan (CBJ) said on Thursday.

“This effect has been evident over the past few months as there has been a tangible slow down in the rate of real growth and a large increase in the state budget deficit,” the statement added.

According to the CBJ, these indicators have also been accompanied by a regression, exceeding all expectations, in the figures on exports, imports, expatriates’ remittances and foreign direct investment inflow.

“Moreover, there has been a noticeable slowdown in the growth of credit facilities offered by licensed banks to the various economic sectors, resulting to a great extent from a decline in the overall demand witnessed in the national economy,” the Central Bank elaborated.

To deal with the fallout of the global financial crisis and to enhance confidence in the national economy, the CBJ has taken several fiscal and banking measures since October 2008.

Foremost of these procedures was lowering the interest rate at the CBJ’s window deposit and the rate of compulsory cash reserve several times, down to 3 per cent and 7 per cent respectively, the statement indicated.

The CBJ also pumped cash into the national economy by halting the issuance of certificates of deposit which totalled JD3.7 billion, besides other measures, related to allocations, credit classification and legal liquidity.

“Despite international consensus that public sector efforts should focus on encouraging demand and regaining confidence in the national economy, rather than mitigating the directives of supervisory parties and increasing risks, the state in which the global and the Jordanian economy are going through calls for otherwise,” the CBJ statement said.

Taking into account the report of the committee formed by former prime minister Nader Dahabi, the CBJ has decided to adopt banking measures as of December 13, to be observed until the end of 2010.

Foremost of these measures, disseminated to the banking system, is a review of the restructuring of non-performing debts to enable banks meet the financing needs of their clients and overcome the impact of the crisis.

A second measure is allowing banks, in a manner that does not contradict CBJ credit policies, to offer new facilities within specific ceilings to clients whose debts are classified as “debt under watch”.

These measures are in pursuance of the CBJ’s follow up of international and local developments, the statement indicated.

[yazm1991]

Amman Stock Exchange

Thursday’s trading value amounted to JD31.7 million 23.7 million shares traded through 9,610 transactions.

The share price index closed at 2,554 points, a decline of 0.45 per cent.

Out of 163 corporations whose shares were traded, prices of 57 companies rose, and those of 77 entities declined.

The top five gainers were Specialised Investment Compounds by 4.95 per cent, Arab German Insurance by 4.83 per cent, Zara Investment Holding by 4.76 per cent Ihdathiat Co-ordinates by 4.44 per cent, and Ad Dulayl Industrial Park Co. & Real Estate by 4.41 per cent.

The top five losers were Al Januob Filters Manufacturing by 4.94 per cent, Petra Education by 4.87 per cent, Arab Centre For Pharm.& Chemicals by 4.73 per cent, Universal Chemical Industries by 4.72 per cent and International Cards by 4.72 per cent.

[yazm1991]

Quay expansion positions Aqaba 'to become key hub in Mideast'

The Aqaba Container Terminal (ACT) will become a principal shipping hub for the Middle East and Levant after the completion of a $235 million expansion project, a top official from Aqaba Development Corporation (ADC) said Monday.

According to ACT, the project includes a 460-metre extension of the quay, which will increase annual container throughout capacity to a projected two million twenty-foot equivalent units (TEUs).

The 500,000-square-metre facility will double the wharf length to 1,000 metres from the current level of 540 metres, ACT Chief Executive Officer Klaus Hom Laursen said.

Imad Fahkoury, the former ADC chief executive officer who was sworn in yesterday as minister of public sector reform and megaprojects, indicated that the expansion project will bring the overall capital expenditures in ACT since 2006 to $335 million.

ACT, part of the APM Terminals Global network, is the Kingdom’s primary access to international shipping lanes of the Red Sea and beyond.

“The terminal’s traffic grew by 25 per cent during the first three quarters of 2009, although the international trade has declined across the world due to the global financial crisis,” Laursen said.

The container volume at the port surged by 42 per cent to approximately 600,000 TEUs in 2008, he added.

Fakhoury stressed Sunday during a ceremony for signing the agreement with the French-based Soletanch Bachy, main contractor for the berth expansion, that the project’s tender went through a very strict process to ensure 100 per cent transparency.

Charles Menkhorst, the chief executive officer of APM Terminals Africa, Middle East and Indian sub-continent region, said, pointed out that APM Terminals’ headquarters in the Netherlands was involved in choosing the best bidder after reviewing the bid documents and the technical and financial proposals submitted by several competitors.

“This was not something decided upon locally,” he noted.

He expressed his company’s eagerness and commitment to develop and upgrade the ACT, saying: “We have decided to carry out development projects for two of our ports network during next year. ACT is one of them.”

APM Terminals, part of the global A.P. Møller–Maersk Group, took over the management and operation of the terminal, after it has signed a terminal management contract with ADC in 2004.

APM Terminals is expected to pay around JD800 million by 2020, as capital expenditures to develop the terminal, Fahkoury said.

According to Laursen, the port will strengthen its competitiveness position further after the completion of the expansion project.

“We see ACT as a gateway to the wider Levant region,” he said.

He stressed that the development of ACT must go in line with overall enhancement of the land transportation “to create more efficient supply chain”.

[yazm1991]

Great to hear!

[yazm1991]

'US will continue supporting Jordan'

US Ambassador to Jordan Robert Beecroft pledged continued support to the Kingdom on Tuesday, expecting the US economic and military assistance to the country to stand at $660 million in 2010.

Since 1952, the US provided the Kingdom with $6.1 billion in economic assistance alone, excluding military assistance and funds to scores of vital projects implemented by the USAID, the ambassador said in a press conference yesterday.

Noting that Jordan sets a role model in positive reforms, Beecroft indicated that when US officials and congressmen see US assistance having a positive impact on the lives of Jordanians and resulting in better services, they are encouraged to give more.

In the presser marking the 60th anniversary of the establishment of diplomatic ties between Jordan and the US, Beecroft said the Free Trade Agreement (FTA), signed between the two countries in 2001, will go into full force over the next months, adding it will give a boost to bilateral trade.

According to US embassy figures, total bilateral trade amounted to $369 million in 1998 when the Qualifying Industrial Zones Agreement took effect.

Since then, the two-way trade reached its peak in 2007, reaching almost $2.5 billion.

In 2009, the US imported $1.2 billion worth of Jordanian goods, whereas in 1998 the figure was $16 million. Major Jordanian exports to the US include garments, jewellery, machinery, plastic and pharmaceuticals.

The ambassador said 10,000 Jordanians are directly employed and thousands of others are indirectly employed by industries benefiting from trade agreements between the two countries.

Meanwhile, the fifth meeting of the Jordanian-US joint committee started Tuesday with a view to discuss means to develop bilateral cooperation, mainly in economy and commerce, the Jordan News Agency, Petra, reported.

Industry and Trade Secretary General Muntaser Oqla underlined the importance of the meetings, calling on Jordanian businesspeople to benefit from the FTA, which seeks to facilitate the flow of goods between the two countries.

The US-Jordan FTA was the United States’ third agreement, and the first ever with an Arab state.

[yazm1991]

'Ministry of Industry and Trade will focus on enhancing investment environment'

Industry and Trade Minister Amer Hadidi on Wednesday said the ministry’s strategy will focus on enhancing the investment environment in the Kingdom to attract more Arab and foreign investments. He added that the ministry will also encourage Jordanian businesspeople to expand their investment projects.

In a press statement issued yesterday, Hadidi stressed that the ministry will work to support all economic sectors and increase Jordan’s exports to international markets by utilising free trade agreements signed with several countries in addition to supporting small and medium enterprises. “Government entities concerned with investments will be unified in order to facilitate procedures and remove obstacles that face investors,”the minister indicated, noting that the ministry will focus on the stability of prices in the local market, particularly foodstuff and basic commodities.

[yazm1991]

Amman Stock Exchange

Wednesday’s trading value amounted to JD24.4 million spread over 19.7 million shares traded through 8,799 transactions.

The share price index closed at 2,608 points, a drop of 0.15 per cent.

Out of 164 companies whose shares were traded, prices of 60 corporations rose, and those of 73 entities declined.

The top five gainers were Jordan Ceramic Industries by 5 per cent, Al Shamekha for Real estate and Financial Investments by 4.97 per cent, Al Ahlia Enterprises by 4.92 per cent, Specialised Investment Compounds by 4.92 per cent and Arab German Insurance by 4.90 per cent.

The top five losers were Investors and Eastern Arab for Industrial and Real Estate Investments by 4.93 per cent, Afaq for Energy by 4.85 per cent, Jordan Investment Trust by 4.84 per cent, Jordan Paper & Cardboard Factories by 4.74 per cent, and Awtad for Financial and Real Estate Investment by 4.67 per cent.

[yazm1991]

Unemployment drops in 4th quarter

The unemployment rate dropped to 12.2 per cent during the fourth quarter of this year compared to 14 per cent during the third quarter, according to the Department of Statistics (DoS).

The Labour Ministry's recruitment department director, Mohammad Qudah, attributed the decrease to a series of recruitment projects, implemented by the ministry and other concerned entities, that helped secure thousands of jobs for Jordanians.

These projects, he said, include one for recruiting IT graduates and another run in cooperation with the army and the private sector that entails employing Jordanians in the construction sector.

Since the beginning of this year, the ministry secured about 8,200 jobs for Jordanians, and the figure is expected to reach approximately 9,000 jobs by the end of this year, Qudah told The Jordan Times on Saturday.

Over the past 10 years, the ministry has secured a total of 93,634 jobs for Jordanians.

The DoS report indicated that the jobless rate among men was 10.5 per cent during the fourth quarter, while among women it stood at 20.3 per cent.

Unemployment during the fourth quarter of 2008 stood at 12 per cent, 9.8 per cent among men and 22.1 per cent among women, according to DoS figures.

The department's quarterly surveys, which are carried out in the middle of each quarter, provide data reflecting the reality of a full quarter, according to DoS.

The findings also showed that the unemployment rate was high among holders of bachelor’s and master’s degrees, standing at 15.7 per cent.

According to the DoS survey, which covered a sample comprising around 13,000 households distributed across the Kingdom's 12 governorates, 1 per cent of the unemployed workforce was illiterate while 47 per cent did not complete high school.

With regard to age distribution, the survey revealed that a substantial majority of the employed, about 62 per cent, were between the ages of 20 and 39.

Moreover, the survey showed that 51.6 per cent of employed females were university graduates, whereas only around 19 per cent of males held university degrees.

Accordingly, the crude labour force participation ratio, which refers to the total labour force divided by the total population, amounted to around 25 per cent.

[yazm1991]

Great news!

[yazm1991]

'Low demand, competition hurt Jordan’s exports in 2009'

Low demand and strong competition from neighbouring countries were the main reasons for the 20 per cent decline in the Kingdom’s exports in 2009, according to a senior government official.

In a meeting with media representatives on Sunday, Minister of Industry and Trade Amer Hadidi said Jordan lacks the financial and natural resources of other countries in the region, adding that these countries provide direct cash support to their industrial sectors.

Highlighting the ministry’s plans for the coming few months, Hadidi said it will focus on addressing challenges facing specific sectors and finding tools to motivate their growth in the short, medium and long terms.

“We are currently focusing our efforts on penetrating new markets such as Algeria, Libya, Yemen, Sudan and Iraq. The ministry will implement a campaign to promote Jordanian products in these targeted countries,” the minister said, noting that the Arab Free Trade Agreement (AFTA), which was signed five years ago, exempted all intra-Arab trade from customs.

He underlined that around 45 per cent of the Kingdom’s foreign trade is with Arab states, adding that Jordan is fully committed to the terms of the AFTA, which calls for promoting intra-Arab trade.

Regarding the Jordan-Canada FTA, the minister expected the deal to come into effect as of the beginning of next April, noting that the agreement is complementary to the agreement signed with the US because US buyers of Jordanian products reexport to Canada.

Hadidi also announced that the service sector will soon benefit from a 15-million-euro agreement signed previously with the EU, in addition to another 15-million-euro agreement expected to be signed within the coming few days, which will be used to provide technical support to the industrial sector.

The minister said the government has prepared programmes to address all obstacles facing industrial sector exports, especially the pharmaceutical sector, which has been suffering as other countries have adopted protectionist economic policies, and added that the garments sector is one of the key elements in the economy.

Jordan Enterprise Development Corporation CEO Yarub Qudah highlighted the institution’s work methodology with regards to the development and stimulation of start-up companies, adding that it is based on encouraging young and creative Jordanians to translate their ideas into viable and successful projects.

Qudah added that the corporation is also focusing on the implementation of a funding mechanism designed to facilitate access of small- and medium-sized ventures to financing through a JD25 million venture capital fund.

[yazm1991]

Unemployment slightly up in 2009

The unemployment rate for 2009 reached 12.9 per cent, compared with 12.7 per cent for 2008, according to the results of a survey conducted by the Department of Statistics (DoS), the Jordan News Agency, Petra, reported Wednesday.

Unemployment in 2009 stood at 10.3 per cent for male workers against 24 per cent for female workers, the survey showed.

The survey also showed that the jobless rate increase was the highest among holders of graduate and postgraduate degrees, with unemployment among these individuals reaching 16.2 per cent, compared with 11.7 per cent last year.

Regarding education, the survey indicated that 47.2 per cent of the jobless possessed education below the secondary level.

Education was below the secondary level for 57.5 per cent of the total male workforce, compared with 16 per cent for female workers.

As for the employed, the survey showed that 63 per cent of male workers and 75 per cent of females were between the ages of 20-39.

Results also showed that crude labour participation (the workforce divided by the total population) reached around 25.5 per cent while revised labour participation (the workforce divided by the population of 15 years or older) was 64.8 per cent for male workers against around 15 per cent for females.

The unemployment rate, which stood at 14 per cent in 2006, dropped to 13.1 per cent in 2007 and reached 12.7 in 2008, according to the DoS figures.

Labour Minister Ibrahim Omoush said earlier this week that the ministry's top priority is reducing unemployment and creating job opportunities, particularly in the agricultural sector.

A poll conducted last month by the Centre for Strategic Studies at the University of Jordan showed that rising unemployment was a major concern among the public, with 29 per cent saying the government should give the issue top priority, while related issues such as cost of living (23 per cent), poverty (18 per cent) and the general economic state (14 per cent) were also named as priority issues.

The same survey found, however, that only 47 per cent of opinion leaders believed the incumbent government would succeed in curbing unemployment and alleviating poverty.

[yazm1991]

Eastern Holding Group ups investments by $100m

Eastern Holding Group on Saturday announced it will be increasing its investments in the Kingdom this year by launching new projects worth of $100 million.

According to the group vice chairman, Osama Dabbas, 75 per cent of the funds allocated for projects, in the fields of aviation, hospitality and industry, will be financed by the company, while the rest of the amount will be borrowed from local banks.

The group has business activities in airline, aviation training, flight services, security, water treatment and tourism and hospitality.

During a ceremony held under the patronage of Prime Minister Samir Rifai, the group signed agreements with international companies to expand its training facilities by purchasing three airline simulation machines worth $30 million for Boeing and Embraer aircrafts.

Another agreement was signed for the management of a new five-star hotel to be opened in Amman this year.

The $50-million hotel will consist of 200 rooms, according to the business group.

Dabbas indicated that Eastern Holding, which employs around 1,000 people in Jordan, will provide more than 500 direct job opportunities in addition to indirect employment through the new agreements.

He noted that another $20 million will be allocated for the affiliated companies of the group to expand their services in the Kingdom.

Deputising for Rifai, Tourism and Antiquities Minister Maha Khatib said the government is working on an economic strategy to boost investment in Jordan, stressing that the country’s economy was able to deal with global economic crisis.

[yazm1991]

Great news

[yazm1991]

AT A GLANCE

Toukan sees 4% economic growth this year

Central Bank of Jordan (CBJ) Governor Umayya Toukan on Tuesday predicted the Kingdom’s economy to grow by 4 per cent during this year. He made the remark during a meeting with the Senate Financial and Economic Committee to brief them on the monetary policy of Jordan and the procedures taken by CBJ to protect the banking system from the consequences of the global financial crisis. Also attending the meeting, Marwan Awad, the chairman of the Association of Banks in Jordan, said banks’ commitment to CBJ instructions assisted financial institutions to overcome the repercussions of the crisis.

Jordanian-Iraqi Land Transport Co. to auction remaining assets

The general assembly of the Jordanian-Iraqi Land Transport Company, which is currently under liquidation, decided this week to auction the company’s remaining assets of truck heads and spare parts. During the general assembly meeting, chaired by Transport Minister Alaa Batayneh and his Iraqi counterpart Amer Ismael, participants decided to transfer the property of the company’s real estate assets in Jordan to the Jordanian government and those in Iraq to the Iraqi government, in accordance with their rated value. It was also decided to gradually sell the company’s shares at appropriate dates, based on the conditions of Jordan stock market, to attain the highest price.

Rum Group to increase capital to JD14m

The general assembly of Rum Group for Transportation and Tourism Investment approved this week a board decision to raise its capital to JD14 million from JD7 million. One million of the increase will come from an earlier issuance while another three million will be secured through private placement and the remaining part will be made available through a strategic partner. Board Chairman Riyadh Khashman said the company is increasing its capital to be able to expand its investment in the aviation field.

[yazm1991]

Jordan, Spain renew 125-million-euro programme

Jordan and Spain on Wednesday renewed the 125-million-euro financial cooperation programme between the two sides, in a bid to explore further areas of collaboration in all fields.

Under the programme, Spain will make available a financial facility to Jordan for an amount of 125 million euros to finance priority development projects.

This financial facility is divided into 100 million euros of tied concessional loans to finance development projects through Spanish goods and services, 20 million euros of untied concessional credit, and five million euros to finance economic feasibility studies for projects and programmes that will be implemented by Spanish companies, Spanish Secretary of State for Trade Silvia Iranzo Gutiérrez said Wednesday.

During a meeting with Gutiérrez yesterday, Planning and International Cooperation Minister Jaafar Hassan highlighted Spain’s active involvement in Jordan’s development process.

The two sides signed in December the memorandum of understanding (MoU) on financial cooperation.

Under the MoU, projects eligible for funding are in sectors such as waste and wastewater, energy and renewable energy, infrastructure and information technology.

During yesterday’s meeting, both sides stressed on the importance of enhancing cooperation between the private sectors through promoting business-to-business links.

The previous financial cooperation programme was signed in October 1999 and provided financial support (soft loans and grants) of $55 million to finance a number of priority development projects in various sectors in Jordan, including water, health, education, as well as conducting a number of feasibility studies.

The coordination between the two sides is expected to expand, particularly after they hold the Jordanian-Spanish joint commission for cultural, educational, scientific and technical cooperation meeting before the end of this year, according to Hassan.

This meeting aims at enhancing technical cooperation between Jordan and Spain in various fields, specifically in health, environment, political development, local and regional development and poverty alleviation, Hassan added, stressing Jordan’s determination to work closely with Spain on European Union presidency in advancing towards the Enhanced Status with the European Union in 2010.

Gutiérrez described the relations between Jordan and Spain as “strategic” saying: “Spain views Jordan as a strategic partner.”

She expressed Spain’s desire to strengthen trade and investment relations with the Kingdom, stressing that the signing of the Nuclear Cooperation Agreement between the two countries will pave the way for greater cooperation in this area.

[yazm1991]

‘Jordan’s economy to grow nearly 4% in 2010’

Jordan’s economy is expected to grow 3.9 per cent this year and 4.5 per cent in 2011, according to a World Bank report issued on Thursday.

The Global Economic Prospects 2010 report said growth in the Kingdom’s gross domestic product (GDP) is likely to be driven by domestic demand with the help of fiscal and monetary stimulus measures, as external contributions decline.

Meanwhile, experts described the projected growth figures as positive, expecting real economic recovery to come during the second half of this year.

Economist Jawad Anani predicted that the first six months of 2010 would not be encouraging, saying GDP growth will be between 2 per cent and 2.5 per cent, reaching 4 per cent in the second half of the year.

“Last year, the country’s economy did not achieve real growth as it grew only 2.5 per cent, which is the minimum percentage required to maintain the average income per capita,” Anani told The Jordan Times on Thursday, adding that the cost of living also went down in 2009.

The economist, who has previously held several ministerial posts, explained that values of properties and shares will rise as well as commodity prices, which will speed up recovery, but noted that the government has to take certain measures to stimulate some economic sectors.

Ali Tabbalat, a financial analyst, said recovery will be linked to trade activities and other external factors, including recovery in the economies of the Gulf countries.

“The World Bank figure is optimistic. I personally expected growth to be slower because Jordan’s economy should rebound six months after the Gulf economies recover,” Tabbalat elaborated, adding however that if the government works intensively to attract foreign investments, the growth forecast by the World Bank could be reached in the second half of this year.

Economist Yusuf Mansur said fast recovery was not likely during the first six months of 2010, but expected GDP growth to reach 4-5 per cent or even higher because local banks will start to ease conditions on credit facilities, particularly to real estate companies.

“Growth is also linked to an increase in international oil prices, which will reflect positively on the economies of Gulf countries and automatically on Jordan’s economy,” Mansur noted.

Anani echoed Mansur and Tabbalat in linking economic recovery in the Kingdom to a rebound in the Gulf.

“Seventy per cent of Jordan’s foreign currency income is from the Gulf region and recovery in these countries will increase local exports and investments inflows,” Anani stated, forecasting that the repercussions of the global economic crisis would fade gradually during the first half of this year.

The World Bank report indicated that in 2009, steep declines in external demand, particularly from European markets, had a negative effect on merchandise exports in Jordan and other countries in the region including Egypt, Lebanon, Morocco and Tunisia.

This factor, the report said, was compounded by falling tourism volumes, lower worker remittances, and declining foreign direct investment inflows, especially from the Gulf economies, which the World Bank attributed to falling oil revenues.

The report also noted that economic recovery in the Gulf countries would support a revival in the Jordanian economy, suggesting a resumption of export growth, a rebound in remittances and various service receipts, and improvement in business expectations, leading to a revival in capital spending.