London

ANALYSTS are growing sceptical of European Central Bank (ECB) president Mario Draghi's efforts to prod companies to spend on growth.

They are cutting estimates for capital expenditures (capex) in Europe at the fastest rate since the financial crisis as chief executive officers shy away from reinvesting in their own businesses and instead bulk up balance sheets or tempt shareholders with acquisitions and stock buybacks. While analysts are still calling for a 2.6 per cent increase in capex from last year, the 19 million euros (S$29.2 million) that they predict each Stoxx Europe 600 Index company will spend on average in 2016 is the most bearish forecast in six years.