Mining And Quarrying Trends In The Metals And Industrial Minerals Industries - Mining Highlights ? Summary (5468dc6e-6708-4ff4-bf65-9f36e407e8a4)

The year 1992 recorded unimpressive economic growth and uncertainties over what changes would occur for the financial market. Falling interest rates in the United States and elsewhere tended to exert a number of positive influences on financial markets and, indirectly, the mining and quarrying industry. The interest rate declines during 1992 were no exception. Lower rates prompted many investors to turn their attention to long-term investments such as stocks that offer potentially greater rates of return, causing large cash inflows into the equity market. Lower rates made it easier for businesses to finance growth and for consumers to finance the purchase of products businesses made. Also the rates enabled many companies to increase their health and profitability by refinancing their existing loans at lower rates. Falling interest rates were not confined to the United States. With Japan and Western Europe in the midst of economic slumps, marketing authorities in many countries overseas lowered rates in an effort to stimulate business activity. True to form, that contributed to stock market rallies abroad. Stabilizing inflation and lower interests stimulated the industry during 1992 and will likely influence favorably the industry for the next few years.