In 2000, U.S. businesses invested $1.172 trillion in capital goods, both new and used. This represents an 11.9 percent increase from the prior year, compared to the 7.8 percent increase in 1999 and 11.4 percent increase in 1998. The 1999 estimate of $1.047 trillion reflects an upward revision of $8.8 billion. Spending on new structures and equipment in 2000 accounted for $1.086 trillion or 92.7 percent of total expenditures. Expenditures for structures totaled $367.6 billion, with $327.9 billion (89.2 percent) being spent for new structures. Spending for equipment totaled $804.0 billion, with $758.0 billion (94.3 percent) for new equipment.

Companies with employees accounted for 93.9 percent of 2000 investment spending at $1.101 trillion. Their investment in structures amounted to $341.3 billion and for equipment, $759.2 billion. Spending by companies without employees in 2000 was $71.2 billion, about 6 percent of total business investment.

Of the $1.101 trillion invested by companies with employees in 2000, 69.0 percent was for equipment and 31.0 percent for structures. These proportions varied widely by sector. Construction, finance and insurance, and manufacturing spent substantially more on equipment than structures. Mining and educational services spent more on structures than equipment

• Tables

Highlights of capital expenditures by business sector

[Business sector data are based on the 1997 North American Industry Classification System]

Manufacturing

This sector led in expenditures for capital goods by spending $214.7 billion, or 19.5 percent of total capital expenditures by businesses with employees. This represents an increase of about 9 percent from 1999. Of the total spending by this sector, $39.6 billion was for structures, and $175.1 billion was for equipment, nearly a fourth of all investment in equipment.

Investment spending by durable goods manufacturers totaled $134.4 billion, about $17.4 billion higher than the prior year. Most of their investment, $113.0 billion, was for equipment, while expenditures for structures amounted to $21.4 billion. The motor vehicle and parts industry was the largest durable goods investor, spending $29.8 billion. The semiconductor industry followed, spending $25.7 billion, a 60.0 percent increase from 1999.

Nondurable goods manufacturers spent $80.3 billion on capital goods, compared to $79.4 billion in 1999. Spending for structures in the current year was $18.2 billion, and for equipment, $62.2 billion. The food industry at $12.7 billion, basic chemical industry at $11.6 billion, and plastic and rubber products industry at $11.1 billion together accounted for 44.0 percent of the nondurable capital expenditures

Information

The information sector rose to the second largest in expenditures for capital goods during 2000, spending $164.2 billion or 14.9 percent of total capital expenditures by companies with employees. This represents an increase of nearly 34 percent from 1999 and follows a 27 percent increase the prior year. Of this sector’s spending, $40.6 billion was for structures, and $123.6 billion for equipment. Wired telecommunications carriers, up about 31 percent from 1999, were the leading industry spenders in this sector at $78.4 billion, 47.7 percent of the information sector total. The wireless communications carriers industry followed at $25.5 billion, nearly a 77 percent increase in capital spending in 2000.

Finance and insurance

The finance and insurance sector spent $133.7 billion on capital goods in 2000, accounting for 12.1 percent of total capital expenditures by companies with employees. Of this amount, $23.0 billion was spent on structures, and $110.7 billion was spent on equipment. The leading industry spender in this sector was nondepository credit intermediation (e.g., sales and lease financing, and credit card issuing,) at $82.4 billion, 61.6 percent of total capital investment in this sector. Of this industry’s spending, 98.2 percent or $80.9 billion was for equipment.

Real estate and rental and leasing

This sector spent $98.3 billion on capital goods in 2000, accounting for 8.9 percent of total capital expenditures by companies with employees. Leading industry spenders in this sector were automotive equipment rental and leasing with $44.3 billion, virtually all of which was for equipment; and real estate with $33.5 billion in capital spending, 88.5 percent of which was for structures. Together they accounted for more than three fourths of the expenditures within this sector.

Retail trade

In 2000, the retail trade sector’s capital spending increased nearly 9 percent, to $69.6 billion, with $32.0 billion going for structures and $37.6 billion for equipment. Food and beverage stores, general merchandise stores, and other retail stores, which includes gas stations, together spent $52.0 billion, 74.7 percent of this sector’s total investment.

Utilities

The utilities sector spent $61.3 billion on capital goods in 2000, up 43 percent from 1999. Just over $52.6 billion, or 85.8 percent of this sector’s investment was by the electric power generators and distributors industry. This industry showed more than a 52 percent increase from the prior year. The natural gas distributors industry spent $6.9 billion on capital goods, and the water and sewage systems industry spent $1.8 billion.

Transportation and warehousing

Investment within this sector was widespread, totaling $60.0 billion in 2000. The air transportation industry led with $20.1 billion, nearly all for equipment, while the truck transportation industry spent $11.7 billion. Together, these industries accounted for 52.9 percent of this sector’s spending.

Health care and social assistance

The health care and social assistance sector spent $53.2 billion in capital expenditures in 2000. The general medical and surgical hospitals industry accounted for over half of the total investment by this sector, at $28.3 billion. The nursing and residential care facilities industry spent $8.5 billion, and the offices of physicians industry spent another $4.5 billion.

Mining

The mining sector spent $42.5 billion on capital goods in 2000, an increase of about 39 percent from the prior year. This sector spent nearly twice as much on structures, $28.1 billion, than equipment, $14.4 billion. The oil and gas extraction industry lead this sector’s spending with $31.7 billion in capital expenditures, up nearly 55 percent from 1999. This industry accounted for nearly three fourths of the sector’s spending.

Wholesale trade

The wholesale trade sector spent $35.0 billion in capital expenditures in 2000. Of this amount, $22.2 billion was by the durable goods industry, and $12.8 billion by the nondurable goods industry.

Professional, scientific and technical services

This sector spent $33.5 billion for capital goods in 2000. The majority of expenditures, about 76.2 percent, was spent on equipment. Although investment was widespread, the computer systems design industry spent the most at $10.5 billion.

Accommodation and food services

This sector’s capital spending in 2000 amounted to $26.3 billion. The food services and drinking places industry spent $16.5 billion for capital expenditures in 2000, up from $10.7 billion the prior year, to become the largest spender in this sector. The traveler accommodation services industry spent $9.8 billion, a decrease of more than 22 percent from 1999.

Construction

The construction sector spent $24.0 billion on capital expenditures in 2000. Of this amount, $22.2 billion, or 92.7 percent was for equipment.

Other services (except public administration)

This sector, which includes various types of organizations and membership groups, repair and maintenance services, and personal services, had $21.1 billion in capital expenditures in 2000. The religious, social advocacy, and organizations industry was the largest spender in 2000, with $13.1 billion, an increase of more than 64 percent from the prior year.

Arts, entertainment and recreation

Investment within this sector increased more than 42 percent, to $19.0 billion. The amusement, gambling, and recreation industry had capital expenditures of $14.2 billion, or 74.8 percent of the total in this sector. This industry’s spending increased more than 49 percent from 1999.

Educational services

The educational services sector increased capital investment nearly 36 percent, to $18.4 billion. Spending for structures was more than three times that for equipment, with structures totaling $13.8 billion and equipment, $4.5 billion.

Administrative and support and waste management

This sector spent $17.5 billion for capital goods in 2000. The office administrative support industry at $6.5 billion, accounted for 37.3 percent of this sector’s spending, while the waste management industries spent another $4.1 billion. Together, these industries account for nearly 16 percent of this sector’s total investment.

Management of companies and enterprises

This sector’s spending amounted to $5.0 billion in capital expenditures, with equipment accounting for 68.7 percent of this total.

Forestry, fishing, and agricultural services

This sector’s capital expenditures totaled $1.5 billion, of which 90.7 percent was for equipment.

Note:

Revised 1999 Annual Capital Expenditures Survey data and associated relative standard error tables are included in this publication.

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.