In 2002, U.S. businesses invested $1.008 trillion in capital goods. This is the second consecutive decline in investment spending, down 9.1 percent from the $1.109 trillion in 2001 and down 13.1 percent from the $1.161 trillion in 2000.

Although $926.9 billion, or 91.9 percent of business investment in 2002 was for new structures and equipment, purchases of used structures and equipment at $81.6 billion increased nearly 22 percent from 2001. Expenditures for structures totaled $348.9 billion, with $308.0 billion (88.3 percent) spent for new structures. Spending on structures in 2002 decreased 4.1 percent from the prior year. Spending for equipment totaled $659.6 billion, with $618.9 billion (93.8 percent) for new equipment. Equipment spending decreased 11.5 percent from the prior year.

Companies with employees accounted for $928.0 billion, or 92.0 percent of 2002 investment spending, a decrease of 11.8 percent from 2001. About a third of this investment, $315.6 billion, was for structures and two thirds, $612.5 billion, was for equipment. Spending on structures decreased 8.9 percent from 2001, and equipment spending decreased 13.3 percent. Of the 130 industries published in this report, 55 industries showed a decrease in spending, 12 increased their spending, and 63 spent about the same as the prior year.

Spending by companies without employees in 2002 was $80.4 billion, or 8.0 percent of total business investment. Total spending by these companies increased 41.9 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 spent $163.3 billion on capital goods in 2002, a decrease of 15.3 percent from 2001. Of the total spending by this sector, $32.5 billion was for structures, and $130.8 billion was for equipment.

Investment spending by durable goods manufacturers totaled $90.1 billion, a decrease of 24.2 percent from 2001 and accounted for nearly all of the manufacturing sectors’ decrease in spending.

Most of the durable goods manufacturers’ investment, $74.2 billion, was for equipment, while expenditures for structures amounted to $15.9 billion. The motor vehicle and parts industry was the largest durable goods investor, spending $23.6 billion in 2002 about the same as 2001. The semiconductor industry spent $12.3 billion, a decrease of 44.3 percent from the prior year. This industry accounted for about a third of the decrease in spending by durable goods manufacturers.

Nondurable goods manufacturers spent $73.2 billion on capital goods, about the same as the prior year. Spending for structures in 2002 was $16.7 billion, and for equipment, $56.6 billion. This trend was seen throughout the nondurable industries with most spending about the same as 2001.

Finance and insurance

The finance and insurance sector was the second largest spender with $125.7 billion on capital goods in 2002, a decrease of 4.1 percent from the prior year. Of this sector’s spending, $24.9 billion was for structures, and $100.8 billion was for equipment. The leading industry spender in this sector was nondepository credit intermediation (e.g., sales and lease financing, and credit card issuing) at $75.9 billion, 60.4 percent of total capital investment in this sector.

Real estate and rental and leasing

This sector spent $96.7 billion on capital goods in 2002, accounting for 10.4 percent of total capital expenditures by companies with employees. The real estate component of this sector nearly doubled spending from the prior year from $23.2 billion in 2001 to $43.9 billion in 2002. In 2002 84.6 percent of spending in the real estate industry was for structures. The rental and leasing component of this sector declined from $59.2 billion in 2001 to $52.6 billion in 2002. Virtually all spending in rental and leasing is for equipment.

Information

The information sector spent $88.9 billion in 2002, a decrease of 38.6 percent from 2001 and compared to a 9.6 percent decrease the prior year. Of this sector’s spending, $26.4 billion was for structures, and $62.6 billion for equipment. Wired telecommunications carriers were the leading industry spenders in this sector at $34.8 billion, 39.2 percent of the information sector total, but down from $72.0 billion in 2001. Wireless communications carriers spent $20.5 billion, down $3.5 billion from 2001.

Utilities

The utilities sector spent $67.1 billion on capital goods in 2002, a decrease of 18.9 percent. This follows an increase of 35.1 percent the prior year. The electric power generation and distribution industry spent $59.4 billion, or 88.5 percent of this sector’s investment, down 19.7 percent from the prior year. The natural gas distributors industry spent $6.0 billion on capital goods, down 10.5 percent from 2001.

Retail trade

In 2002, the retail trade sector’s capital spending was $59.4 billion, a decrease of 11.3 percent from the prior year. Of this sector’s spending, $25.9 billion was for structures and $33.4 billion was for equipment.The general merchandise stores industry spent $11.4 billion, a decrease of 29.6 percent, and accounted for most of this sectors decrease in spending.

Health care and social assistance

The health care and social assistance sector spent $59.1 billion for capital expenditures in 2002, an increase of 11.7 percent from the prior year. Spending by the general medical and surgical hospitals industry increased 8.5 percent to $31.5 billion, and accounted for most of this sector’s increase in spending. The nursing and residential care facilities industry spent $7.4 billion, and the offices of physicians industry spent another $5.1 billion.

Transportation and warehousing.

Investment in this sector was $47.8 billion in 2002, a decrease of 17.3 percent from the prior year. The air transportation industry accounted for about a forth of capital spending with $12.3 billion, down 30.5 percent from 2001, and accounted for most of this sector’s spending decrease for equipment. The rail transportation industry with spending at $6.7 billion, the support activities for transportation industry with spending at $3.3 billion, and the warehousing and storage industry with spending at $1.6 billion, decreased 14.9 percent, 45.6 percent, and 39.8 percent respectively. These three industries accounted for most of the decrease in spending for structures.

Mining

The mining sector spent $42.3 billion on capital goods in 2002, a decrease of 17.5 percent, and following an increase of 20.6 percent in 2001 year. This sector spent significantly more on structures than equipment, $24.4 billion and $18.0 billion respectively. The oil and gas extraction industry led this sector’s spending with $32.1 billion in capital expenditures, down nearly 19.5 percent from 2001, and accounted for most of this sector’s decrease in spending.

Wholesale trade

The wholesale trade sector spent $27.9 billion on capital expenditures in 2002, about the same as the prior year. The durable goods industry spent $18.4 billion, and the nondurable goods industry spent $9.4 billion.

Professional, scientific, and technical services

This sector spent $26.6 billion for capital goods in 2002, a decrease of 12.6 percent. The computer systems design industry was the largest spender at $5.8 billion, a decrease of 34.6 percent from 2001. The architectural and engineering industry, with spending at $3.6 billion, decreased 25.5 percent from the prior year.

Construction

The construction sector spent $25.4 billion for capital expenditures in 2002 about the same as 2001. Of this amount, $23.1 billion, or 90.9 percent was for equipment.

Accommodation and food services

This sector’s capital spending in 2002 amounted to $22.5 billion. The food services and drinking places industry spent $11.6 billion for capital expenditures in 2002. The traveler accommodation services industry, which includes hotels and casino hotels, spent $10.9 billion on capital expenditures.

Other services (except public administration)

This sector, which includes various types of organizations and membership groups, repair and maintenance services, and personal services, had $21.3 billion in capital expenditures in 2002. This represents a decrease of 26.6 percent in this sector’s spending, most of which was for structures. The religious, social advocacy, and organizations industry was the largest spender in 2002, with $13.3 billion, a decrease of 34.3 percent from the prior year.

Educational services

The educational services sector spent $19.4 billion on capital expenditures in 2002, an increase of about 11.9 percent from the prior year. Spending for structures was significantly more than for equipment, with structures totaling $14.6 billion and equipment, $4.8 billion.

Administrative and support and waste management

This sector spent $14.6 billion for capital goods in 2002. The office administrative support industry spent $3.8 billion for capital goods. The investigation, security, and services to buildings industry spent $3.7 billion, while the waste management industry spent $3.5 billion.

Arts, entertainment, and recreation

This sector spent $13.8 billion for capital goods in 2002. The amusement, gambling, and recreation industry spent $9.9 billion, or 71.8 percent of this sector’s total expenditures.

Note:

Revised 2001 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. level totals.

Prior to April 5, 2007 the 2002 ACES publication contained two errors:

• In Table 4D. Total Expenditures for Structures in 3253 there were mistakenly two decimal points put in "3.2"
• In Table 4D. Total New Expenditures in 5412 the "2.0" should have been "2.5"

Both of these errors were corrected in the table.