Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Tuesday, November 14, 2006

Infrastructure Spending in Developing Nations is Soaring

Interesting story in Bloomberg today...

"Investment spending in developing markets will rise to about $1 trillion in the decade ending 2014, up from $900 billion in the 10 years previously, according to slides presented by Rice, who oversees an infrastructure segment that includes jet engines, energy equipment and services, aircraft leasing, locomotives, water treatment and oil and gas."

In the more short term, "sales from emerging markets will reach $27 billion, led by spending on the development of infrastructure ranging from airports and roads to water-treatment plants and hospitals."

That's kind of a disconnect with what we see happening with the price of copper, lead, and other materials, but those may just be short-term fluctuations. Let's watch for the longer-term trends to develop.

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