Capex splurge hopes fading

Tim Wallace
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EUROPEAN firms’ €1 trillion (£863m) cash pile will not be invested in a splurge on capital expenditure thanks to recent improvements in confidence, ratings agency Standard and Poor’s warned yesterday.

Fears of years of weak growth in the periphery and the continued chance of a Eurozone break up or collapse continue to plague firms who are still likely to sit on their cash piles, the analysts said.

And they added that the cash piles peaked two years ago and are not unusually high currently, again suggesting hopes are misplaced.