Capital Spending Shows Second Consecutive Quarter Of Growth
Thomson Financial Estimates 6.2% Rise in Quarterly CAPEX Report
Telecom and Industrials Lead 2Q Growth; Financials Reign in Expenses
New York, NY, 08/17/2004
Thomson Financial, an operating unit of The Thomson Corporation (NYSE: TOC; TSX: TOC) and leading provider of information and technology solutions to the worldwide financial community, today reports an estimate that second quarter capital spending is up 6.2% year-over-year across a broad base of US companies. The data analysis, published as Thomson Financial Quarterly CAPEX Report, finds that 2Q04 marked the second consecutive quarter of capital spending growth following a three-year decline that began in the fourth quarter of 2001.
Tracking capital spending across the S&P 500, the Thomson Financial Quarterly CAPEX Report uses actual reported spending data to capture forward-looking business sentiment. The Thomson Financial estimate for 2Q04 year-over-year growth of 6.2% is based on capital spending data aggregated from 52% of those companies in the S&P 500 that provide the data in their quarterly filings.
“This number adds another arrow in the quiver of those who believe economic activity is more robust than the market has perceived it to be,” said Thomson Financial's Director of Research Mike Thompson. “Capital spending does provide some indication of corporate sentiment towards future prospects for business and the economy as a whole.”
Following are summary findings of Thomson Financial's 2Q04 CAPEX Report, depicting sector-by-sector CAPEX spending based on a year-over-year comparison:
SECTOR / GROWTH ESTIMATE (YEAR OVER YEAR)Consumer Discretionary / -4.4%
Consumer Staples / 6.4%
Energy / 5.0%
Financials / -21.2%
Health Care / -4.8%
Industrials / 31.8%
Information Technology / -1.8%
Materials / -11.8%
Telecommunications Services / 10.6%
Utilities / N/A
S&P 500 Index / 6.2%
About Thomson Financial Thomson Financial is a US$1.5 billion provider of information and technology solutions to the worldwide financial community. Through the widest range of products and services in the industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more productive and achieve superior results. Thomson Financial is part of The Thomson Corporation ( www.thomson.com), a leading provider of value-added information, software tools and applications to more than 20 million users in the fields of law, tax, accounting, financial services, higher education, reference information, corporate training and assessment, scientific research and healthcare. With revenues of US$7.44 billion, The Thomson Corporation lists its common shares on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC).
Important Notice This press release and its content do not constitute a recommendation or solicitation to buy or sell securities of any kind, and Thomson Financial has not undertaken any liability or obligation relating to the purchase or sale of any securities for or by any person.
MEDIA CONTACTSJessica Cabral
Manager, Public Relations
+1 617 856 1567
jessica.cabral@thomson.com
John Roderick
J. Roderick, Inc.
+1 631 689 3038
john@jroderick.com