Businesses are expected to cut spending dramatically through much of 2009. A number of economists, including those National City and Wachovia, don’t expect business investment, which make up about one – tenth of US economic activity, to decline through 2009. According to a survey of 679 chief financial officers by Duke University and CFO Magazine this month, US businesses expect to cut capital spending by more than 10% in the next 12 months, a sharp decrease from September, when the CFOs expected business investment to increase slightly. John Graham, finance professor at Duke and director of the survey, says businesses are finding ways to repair existing machinery and buildings rather than replace equipment or move. They likely won’t increase their spending until they see concrete evidence that the economy is improving. Those planning meeting for late winter and early spring are either buying fewer or less – expensive items, or they’re not buying at all. One client who usually spends about $ 80,000 on a conference each year is spending half that. Robert Coen, director of forecasting at media – analysis firm Magna, predicts a 4.5% drop in ad spending to $ 259 billion in 2009 on the heels of a 3.2% drop in 2008. “A recovery in US ad budgets will probably not get underway until 2010,” he says. Another negative for 2009: There aren’t any big ad – spending events such as the Olympics or national elections. Declining business spending will hurt a number of industries but will be especially tough for the manufacturing sector. Nearly two – thirds of manufacturers expect revenue(税收) to be unchanged or lower in 2009 than 2008, a survey from the Institute for Supply Management found. 1.According to John Graham, how did businesses to deal with the economy crisis? A. They are spending less. B. By increasing their business spending sharply. C. By replacing old equipment with the new equipment. D. By moving into the cheaper offices. 2.Why are the managers buying less – expensive items for their meetings? A. To save money themselves. B. To cut down on expenses and save for the companies. C. To see the concrete evidence that the economy is on the mend. D. To save money so they spend more on advertisements. 3.It can be inferred that in a year Olympics are held, many companies _________. A. contribute more money to the poor B. give the participants money C. spend more money on advertising D. cut down on advertising budgets 4.The best title for the passage is ____________. A. Predictions about Buying New Equipment in 2009 B. Predictions about Conference Planning in 2009 C. Predictions about Advertising Spending in 2009 D. Predictions for Business Spending in 2009 |