U.S. INVESTED $1,100n, IN SUROPE IN 1962, from Financial Times 26/6/63
Private U.S. investments in Lurope rose by $1,100 m, in 1962 to bring the total direct investments by Americans in the area to $8,800 m., according to a report just published in the latest issue of the Commerce Department's Survey of Currnet Business, The increase, the Department said, was slighlly higher than + in 1961 and it predicted that new investments in Burope would again be considerable in 1963, According to the report,half the 1962 capital outflow consisted of investments in manufacturing with about $100m. being used by Americans for the purchase of Buropean companies.
The report noted that the expert of new capitel to the Common. Market rose to a record $466m. last year, but that reinvestment of earnings from prev ious investments fell from $129m. to $81 m. In other Buropean countrios where capital expenditures have recently been rumning at an annual rate of over $500n, there was somo reduction in investments from the 1961 level refiscting principally a fall off in the flow of capital to the U.K. oil companies. For the whole world the report indicated the value of U.S. private investments abroad rose by $3,000n, in the first half of this year to a total of ยง63,000n,
In 1962 these investments had risen by $4,300m,. consisting of over $3, 000m, in new capital and over $1,000m. in reinvested carnings, As investment outlays abroad have expanded over recent years earnings also rose by $430m. last year to $4,200 nm. More than half the increase, the report pointed cut, went to oil companies, Overall manufacturing companies raised their earnings in 1962 by $100 me but despite increased investments their oarnings foll by $37 me with chemical companies registering the most significant declines.