Chart 3. The Need to Finance Inventories Grew in the First Quarter 2004. A bar chart shows the percent contribution to total need for commercial and industrial (C&I) loans to fund both capital expenditures and change in inventories.
For consumer durables/apparel; capital goods; household and personal products; retailing; and real estate, capital expenditures make up less than half of total need for C&I funding. C&I loan demand is driven totally by capital expenditures in the transportation and utilities sectors. Capital expenditures drive more than 90 percent of the need for C&I funding in telecommunication services; software and services; and hotels, restaurants, and leisure.