In 2001, U.S. businesses invested $1.110 trillion in both new and used capital goods. This represents a 4.4 percent decrease from the prior year, compared to the 10.9 percent increase in 2000 and 7.8 percent increase in 1999. The decrease in capital goods for 2001 is the first reported since the survey began nine years ago. The 2000 estimate of $1.161 trillion reflects a downward revision of $10.6 billion, primarily resulting from revisions and restatements of prior reported data.

Spending on new structures and equipment in 2001 accounted for $1.043 trillion or 94.0 percent of total expenditures. Expenditures for structures totaled $361.9 billion, with $333.7 billion (92.2 percent) being spent for new structures. Spending on structures in 2001 was about the same as the prior year. Spending for equipment totaled $748.0 billion, with $709.3 billion (94.8 percent) for new equipment. Equipment spending decreased 6.1 percent from the prior year.

Companies with employees accounted for 94.9 percent of 2001 investment spending at $1.053 trillion. About a third of this investment, $344.4 billion was for structures and two thirds, $708.8 billion was for equipment. Although total spending by companies with employees decreased 3.4 percent in 2001, spending on structures was about the same as the prior year while equipment spending decreased 5.7 percent. Spending by companies without employees in 2001 was $56.7 billion, about 5.1 percent of total business investment. Total spending by these companies decreased 20.4 percent from the prior year.

• Tables

Highlights of capital expenditures by business sector for companies with employees

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

Manufacturing

The manufacturing sector led in expenditures for capital goods by spending $192.4 billion, or 18.3 percent of total capital expenditures by companies with employees, a decrease of 10.4 percent from 2000. Of the total spending by this sector, $39.6 billion was for structures, and $152.8 billion was for equipment, nearly a fourth of all investment in equipment.

Investment spending by durable goods manufacturers totaled $118.7 billion, a decrease of 11.3 percent from 2000. Most of their investment, $96.6 billion, was for equipment, while expenditures for structures amounted to $22.1 billion. The motor vehicle and parts industry was the largest durable goods investor, spending $24.2 billion, an 18.8 percent decrease from 2000. The semiconductor industry followed, spending $22.0 billion, or 15.6 percent less than the prior year.

Nondurable goods manufacturers spent $73.7 billion on capital goods, a decrease of 9.0 percent from the prior year. Spending for structures in 2001 was $17.5 billion, and for equipment, $56.2 billion. Although spending by most nondurable goods industries declined in 2001, the food and pharmaceutical and medicine industries increased. The food industry at $14.5 billion increased 14.0 percent and the pharmaceutical and medicine industry at $10.4 billion increased 13.6 percent. Together these two industries accounted for 33.8 percent of the nondurable capital expenditures.

Information

The information sector repeated as the second largest sector in expenditures for capital goods in 2001, spending $146.3 billion or 13.9 percent of total capital expenditures by companies with employees. This amount represents a decrease of 8.7 percent from 2000 compared to a 30.4 percent increase the prior year. Of this sector’s spending, $40.0 billion was for structures, and $106.3 billion for equipment. Wired telecommunications carriers were the leading industry spenders in this sector at $73.8 billion, 50.4 percent of the information sector total. Wireless communications carriers followed at $24.0 billion. The two industries accounting for most of the decrease in this sector were: telecommunication resellers, satellite, and other telecommunications, down 45.3 percent to $7.5 billion; and, information services, down 60.9 percent to $3.5 billion.

Finance and insurance

The finance and insurance sector spent $131.1 billion on capital goods in 2001, accounting for 12.4 percent of total capital expenditures by companies with employees. Of this amount, $22.7 billion was spent on structures, and $108.4 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 $79.7 billion, 60.8 percent of total capital investment in this sector; virtually all of this spending was for equipment.

Real estate and rental and leasing

This sector spent $83.1 billion on capital goods in 2001, accounting for 7.9 percent of total capital expenditures by companies with employees. Total spending decreased 10.1 percent from 2000. Leading industry spenders in this sector were automotive equipment rental and leasing at $41.3 billion, down 6.9 percent, virtually all of which was for equipment; and, real estate with $23.5 billion in capital spending, 84.7 percent of which was for structures. Together, these two industries accounted for 77.9 percent of the expenditures in this sector.<>

The utilities sector spent $82.8 billion on capital goods in 2001, an increase of 35.1 percent. This follows an increase of 43.2 percent the prior year. The electric power generators and distributors industry spent $74.0 billion or 89.3 percent of this sector’s investment. This industry’s spending represents a 40.6 percent increase from the prior year. The natural gas distributors industry spent $6.7 billion on capital goods, and the water and sewage systems industry spent $2.2 billion.

Retail trade

In 2001, the retail trade sector’s capital spending was $66.8 billion, with $29.9 billion for structures and $36.9 billion for equipment. Food and beverage stores, general merchandise stores, and other retail stores, (including gas stations), together spent $49.4 billion, 74.0 percent of this sector’s total investment.

Transportation and warehousing

Investment in this sector was $57.5 billion in 2001, about the same as 2000. Decreases in air, truck, and ground transportation were offset by increases in most of the other transportation industries (including oil and gas pipelines). The air transportation industry led in spending for capital goods with $17.7 billion, nearly all for equipment. This industry’s spending decreased 11.9 percent from the prior year. The truck transportation industry spent $8.3 billion, down 29.0 percent from 2000, and the rail transportation industry spent $7.8 billion, up 5.5 percent. Together, these three industries accounted for 58.8 percent of this sector’s spending.

Health care and social assistance

The health care and social assistance sector spent $52.9 billion in capital expenditures in 2001, about the same as the prior year. The general medical and surgical hospitals industry increased 5.5 percent to $29.0 billion, and accounted for nearly 55 percent of the total investment by this sector. The nursing and residential care facilities industry spent $7.1 billion, and the offices of physicians industry spent another $4.4 billion.

Mining

The mining sector spent $51.1 billion on capital goods in 2001, an increase of 20.1 percent from the prior year. This sector spent significantly more on structures than equipment, $32.7 billion and $18.4 billion respectively. The oil and gas extraction industry led this sector’s spending with $39.9 billion in capital expenditures, up nearly 25 percent from 2000. This industry accounted for more than three fourths of the sector’s spending.

Professional, scientific, and technical services

This sector spent $30.5 billion for capital goods in 2001, a decrease of 10.5 percent. The computer systems design industry was the largest spender at $8.9 billion. The architectural and engineering industry at $4.8 billion was about the same as 2000, and the legal services industry at $3.4 billion increased 19.6 percent. Spending decreases were observed in the consulting services, advertising, and accounting and taxpayer services industries.

Wholesale trade

The wholesale trade sector spent $29.7 billion on capital expenditures in 2001. Of this amount, $16.2 billion was by the durable goods industry, and $13.5 billion by the nondurable goods industry.

Other services (except public administration)

This sector, which includes various types of organizations and membership groups, repair and maintenance services, and personal services, had $29.0 billion in capital expenditures in 2001. This represents an increase of 37.3 percent in this sector’s spending. The religious, social advocacy, and organizations industry was the largest spender in 2001, with $20.3 billion, an increase of 54.9 percent from the prior year.

Construction

The construction sector spent $24.8 billion on capital expenditures in 2001. Of this amount, $20.9 billion, or 84.4 percent was for equipment.

Accommodation and food services

This sector’s capital spending in 2001 amounted to $21.3 billion. The food services and drinking places industry spent $11.5 billion for capital expenditures in 2001, a decrease of 30.4 percent from the prior year. The traveler accommodation services industry, which includes hotels and casino hotels, spent $9.9 billion on capital expenditures.

Educational services

The educational services sector spent $17.4 billion on capital expenditures in 2001, about the same as in the prior year. Spending for structures was significantly more than for equipment, with structures totaling $12.9 billion and equipment, $4.5 billion.

Administrative and support and waste management

This sector spent $16.0 billion for capital goods in 2001, a decrease of 8.9 percent from the prior year. The office administrative support industry, at $5.0 billion, accounted for 31.0 percent of this sector’s spending. The waste management industries spent $4.0 billion, accounting for another 24.8 percent of this sector’s spending.

Arts, entertainment, and recreation

Investment within this sector decreased 21.7 percent to $15.0 billion in 2001. The amusement, gambling, and recreation industry spent $11.3 billion, or 75.7 percent of this sector’s total expenditures; this industry’s spending decreased 20.8 percent from 2000.

Note:

Revised 2000 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.