In 1999, U.S. businesses invested $1.038 trillion in capital goods, both new and used , an increase of 6.9 percent from the prior year, compared to the 1998 increase of 11.4 percent and the 1997 increase of 8.0 percent. The 1998 estimate of $970.9 billion reflects a downward revision of $2.7 billion. Spending on new structures and equipment in 1999 accounted for $977.3 billion or 94.1 percent of total expenditures. Expenditures for structures totaled $320.8 billion, with $297.4 billion (92.7 percent) being spent for new structures. Spending for equipment totaled $717.3 billion, with $679.8 billion (94.8 percent) for new equipment. Companies with employees accounted for 93.0 percent of 1999 investment spending at $965.8 billion. Their investment in structures amounted to $294.6 billion and for equipment, $671.3 billion. Spending by companies without employees in 1999 was $72.3 billion, about 7 percent of total business investments. Of the $965.8 billion spent by companies with employees in 1999, 69.5 percent was for equipment and 30.5 percent was for structures. These proportions varied widely by sector, with manufacturing and finance and insurance spending significantly more on equipment, and educational services spending more on structures

• Tables

Highlights of capital expenditures by business sector

[Business sector data are based on the North American Industry Classification System]

Manufacturing

This sector led in expenditures for capital goods by spending $196.0 billion, or 20.3 percent of total capital expenditures by businesses with employees. Of the total spending by this sector, $34.0 billion was for structures and $162.0 billion was for equipment, about a fourth of all investment in equipment.

Investment spending by durable goods manufacturers totaled $116.2 billion, about the same as 1998. Most of their investment, $99.1 billion, was for equipment, while expenditures for structures amounted to only $17.1 billion. Motor vehicle and parts manufacturers were the largest durable goods investors, spending $24.9 billion.

Nondurable goods manufacturers spent $79.8 billion on capital goods, a decrease from 1998 of about 7 percent. Basic chemicals accounted for most of this decline. Of this sector’s total spending, $16.9 billion was for structures, and $62.9 billion was for equipment. Food manufacturing at $13.7 billion and plastics and rubber products at $11.3 billion, together accounted for nearly a third of the nondurable capital expenditures

Finance and Insurance

The finance and insurance sector was second largest in expenditures, spending $127.2 billion or 13.2 percent of total capital expenditures by companies with employees. Of this amount, $19.7 billion was spent on structures and $107.5 billion was spent on equipment. The leading spender in this sector was nondepository credit intermediation (e.g., real estate lending,sales financing, and credit card issuing) at $80.2 billion, 63 percent of total capital investment in this sector

Information

The information sector, up nearly 25 percent from the prior year, had $120.2 billion in capital expenditures in 1999. This sector accounted for 12.5 percent of total capital expenditures by companies with employees. Spending for equipment totaled $83.8 billion while structures accounted for $36.4 billion. Wired telecommunications carriers, up 10 percent from 1998, were the leading spenders in this sector at $55.7 billion, 46.4 percent of the information sector total. Wireless communications carriers, at $14 billion, showed a 75 percent increase in capital spending in 1999

Real estate and rental and leasing

This sector spent $97.6 billion on capital goods in 1999, accounting for 10.1 percent of total capital expenditures by companies with employees. Leading spenders in this sector were automotive equipment rental and leasing with $37.1 billion, virtually all of which was for equipment; and real estate with $36.9 billion in capital spending, 88.6 percent of which was for structures. Together they accounted forapproximately three fourths of the expenditures for capital goods within this sector. The commercial and industrial equipment leasing industry, at $20.9 billion, had the largest increase within this sector, 73 percent from the prior year

Retail trade

In 1999, the retail trade sector’s capital spending increased 11 percent to $63.7 billion with $29.3 billion going for structures, and $34.4 billion for equipment. Food and beverage stores, general merchandise stores, and other retail stores, which includes gas stations, together spent $49.1 billion, 77.1 percent of investment by this sector

Transportation and warehousing

Investment within this sector was widespread, totaling $55.1 billion in 1999. The air transportation industry led with $19.6 billion, nearly all for equipment, while rail and truck transportation together spent $18.1 billion

Health care and social assistance

The health care and social assistance sector spent $51.3 billion in capital expenditures in 1999, split almost evenly between structures and equipment. Hospitals accounted for over half of the total investment by the sector at $28.9 billion, while nursing and residential care facilities spent $8.4 billion, and outpatient care another $3.2 billion.

Utilities

The utilities sector spent $44.6 billion on capital goods in 1999. Over three fourths, or $34.6 billion, of this sector’s investment was by electric power generators and distributors. This industry showed nearly a 22 percent increase from the prior year. Natural gas distributors spent $8.0 billion on capital goods, and the water and sewage systems industry spent $2.0 billion. This is one of the sectors where capital spending on structures, $23.1 billion, exceeded capital spending on equipment, $21.6 billion

Wholesale trade

This sector spent $33.4 billion in capital expenditures in 1999. Of this amount, $19.8 billion was by durable goods wholesalers, and $13.7 billion by nondurable goods wholesalers

Mining

The mining sector spent $30.5 billion on capital goods in 1999, a decrease of nearly 25 percent. This sector spent more on structures, $17.6 billion, than on equipment, $12.9 billion. Although the oil and gas extraction industry lead with $20.5 billion in capital expenditures or 67.1 percent of the mining sector total, their spending decreased 28 percent from 1998

Professional, scientific and technical services

This sector spent $29.3 billion for capital goods in 1999. The majority of expenditures, 76.9 percent, was spent on equipment. While investment was widespread, the computer systems design industry spent the most at $8.0 billion

Accommodation and food services

This sector’s capital spending in 1999 amounted to $23.2 billion. This sector also spent more on structures than equipment, $13.3 billion versus $9.9 billion. Spending was about equally split between the accommodation and food services industries.

Construction

The construction sector spent $23.1 billion on capital expenditures in 1999. Of this amount, nearly all, $21.4 billion, was for equipment, of which 87.1 percent was for new equipment.

Administrative and support and waste management

This sector spent $17.2 billion for capital goods in 1999. Spending by the waste management industry accounted for about a fourth of spending within this sector with $4.1 billion, while other business related service industries accounted for the remainder

Other services (except public administration)

This sector, which includes various types of organizations and membership groups, repair and maintenance services, and personal services, had $16.1 billion in capital expenditures in 1999. Spending for structures was $9.2 billion compared to $6.9 billion for equipment

Educational services

With total spending for capital goods at $13.5 billion, capital expenditures for structures were over two and a half times that for equipment. Spending for structures amounted to $9.7 billion while spending for equipment was $3.8 billion

Arts, entertainment and recreation

This sector’s spending totaled $12.9 billion for capital goods. The amusement, gambling, and recreation industries had capital expenditures of $9.1 billion, or 70.4 percent of the total in this sector

Management of companies and enterprises

This sector’s spending amounted to $6.7 billion in capital expenditures, with equipment accounting for 71.0 percent of this total

Forestry, fishing, and agricultural services

This sector’s capital expenditures totaled $1.7 billion, of which 79.9 percent was for equipment.

The data in this report are subject to sampling variability, as well as nonsampling error. Sources of nonsampling error include errors of response, nonreporting, and coverage. Further details concerning survey design, methodology, and data limitations are contained in the appendixes of this publication