In 2003, U.S. businesses invested $983.8 billion in both new and used capital goods. This spending level is not statistically different from the revised 2002 level of $997.9 billion and follows two consecutive declines of 10.0 percent in 2002, and 4.5 percent in 2001. The 2002 estimate reflects a downward revision of $10.5 billion.

Spending on new structures and equipment in 2003 accounted for $893.7 billion, or 90.8 percent of total expenditures, a decrease of 2.8 percent from 2002. Expenditures for structures totaled $343.7 billion, with $304.1 billion (88.5 percent) spent for new structures. New structures declined 5.3 percent from the prior year. Expenditures for equipment totaled $640.1 billion, with $589.6 billion (92.1 percent) spent for new equipment. Although spending on new equipment in 2003 decreased 1.5 percent from the prior year, spending for used equipment increased 23.8 percent to $50.5 billion.

Companies with employees (about 5.7 million) accounted for $895.6 billion, or 91.0 percent of 2003 investment spending, a decrease of 2.4 percent from 2002. These companies invested $313.1 billion in structures. Their investment in equipment amounted to $582.5 billion, a decrease of 1.7 percent from 2002. Of the 130 industries published in this report, 41 industries showed a decrease in spending, 23 increased their spending, and 66 spent about the same as the prior year.

Spending by companies without employees in 2003 totaled $88.2 billion, or 9.0 percent of total business investment. Approximately two-thirds of this spending, or $57.6 billion was spent on equipment.

• Tables
  

Highlights of capital expenditures for structures and equipment by companies with employees

Of the $313.1 billion spent on structures by companies with employees, spending was about the same for commercial buildings (18.4 percent), utility structures and facilities (17.0 percent), and offices (15.3 percent). Mine shafts and wells accounted for 10.6 percent of spending on structures. Of the $57.6 billion spent on commercial buildings, 36.3 percent was for multiretail stores (department stores shopping/town centers, etc.), 20.8 percent was for food stores, and 20.6 percent was for warehouses and distribution centers. Of the $53.3 billion spent on utility structures and facilities, 38.5 percent was for electric, nuclear, and other power facilities, and 36.2 percent was for telecommunication structures and facilities. The differences in spending between these two types of facilities are not statistically significant. The commercial buildings, and utility structures were primarily construction of new facilities, while the offices were primarily remodeling, renovation, and modernization of existing facilities. In total, $150.7 billion or 48.1 percent of new investment in structures was for construction of new facilities, and $109.0 billion or 34.8 percent was for remodeling, renovation, and modernization of existing facilities. Tables 5 and 6 contain detailed data on structures expenditures.

Of the $582.5 billion spent on equipment by companies with employees, 30.8 percent was for transportation equipment, 27.7 percent was for information-processing equipment, and 18.1 percent was for industrial equipment. Of the $161.3 billion spent on information processing equipment, 34.6 percent was for computer and peripheral equipment, and capitalized software accounted for 27.5 percent. Tables 7 and 8 contain detailed data on equipment expenditures.

A few companies were unable to provide details on their investment by type of structures and/or type of equipment. This amounted to approximately 4.5 percent of total spending by companies with employees.

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 $149.5 billion on capital goods in 2003, a decrease of 4.9 percent from 2002, following a decrease of 18.5 percent from 2001. Of the total spending by this sector, $30.5 billion was for structures, and $119.0 billion was for equipment. Investment spending by durable goods manufacturers totaled $81.1 billion. Most of the durable goods manufacturers investment of $67.6 billion was for equipment, while expenditures for structures amounted to $13.5 billion. The motor vehicle and parts industry was the largest durable goods investor, spending $23.2 billion in 2003, an increase of 23.8 percent from the prior year. The semiconductor industry spent $8.9 billion, a decrease of 27.8 percent from 2002, and follows a 44.3 percent decline from 2001.

Nondurable goods manufacturers spent $68.4 billion on capital goods, a decrease of 6.5 percent from prior year. Spending for structures in 2003 was $17.0 billion, and for equipment, $51.4 billion. All but two industries (tobacco and petroleum and coal products) showed declines or remained the same from 2002.

Finance and insurance

The finance and insurance sector was the second largest spender with $125.1 billion on capital goods in 2003. Of this sectors spending, $25.0 billion was for structures, and $100.1 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 $74.6 billion, a decrease of 5.9 percent from 2002.

Real estate and rental and leasing

This sector spent $89.4 billion on capital goods in 2003, accounting for 10.0 percent of total capital expenditures by companies with employees. The real estate component of this sector with spending at $28.9 billion, decreased 29.9 percent from 2002. In 2003, 87.0 percent of spending in the real estate industry was for structures. The rental and leasing component of this sector went from $52.9 billion in 2002 to $60.2 billion in 2003. Virtually all spending in rental and leasing is for equipment.

Information

The information sector spent $81.7 billion in 2003, a decrease of 7.4 percent from 2002, compared to a 39.1 percent decrease the prior year. Of this sectors spending, $30.8 billion was for structures, and $50.9 billion for equipment. Wired telecommunications carriers were the leading industry spenders in this sector at $26.8 billion, down from $32.7 billion in 2002. Wireless telecommunication carriers were the second leading industry spenders in this sector at $21.0 billion, down from $23.0 billion in 2002.

Retail trade

In 2003, the retail trade sectors capital spending was $65.5 billion, an increase of 10.5 percent from the prior year. Of this sectors spending, $29.5 billion was for structures and $36.0 billion was for equipment. The general merchandise stores industry spent $14.5 billion in 2003, an increase of 24.2 percent from the prior year.

Health care and social assistance

The health care and social assistance sector spent $60.8 billion for capital expenditures in 2003. Spending by the general medical and surgical hospitals industry, nearly 56.0 percent of this sectors spending, increased 7.2 percent to $34.0 billion from 2002. The nursing and residential care facilities industry spent $6.9 billion, and the offices of physicians industry spent another $5.4 billion.

Utilities

The utilities sector spent $54.7 billion on capital goods in 2003, a decrease of 16.4 percent, and follows a decrease of 20.9 percent from the prior year. The electric power generation and distribution industry spent $47.0 billion, or 85.9 percent of this sectors investment, down 18.9 percent in 2003 and follows a decrease of 21.6 percent in 2002. The natural gas distributors industry spent $5.5 billion on capital goods, down 4.4 percent from 2002.

Mining

The mining sector spent $50.5 billion on capital goods in 2003, an increase of 18.9 percent, and following a decrease of 17.2 percent in 2002. This sector spent more on structures than equipment, $36.4 billion and $14.2 billion respectively. The oil and gas extraction industry led this sectors spending with $41.6 billion in capital expenditures, up 26.1 percent from 2002, and accounted for most of this sectors increase in spending.

Transportation and warehousing

Investment in this sector was $44.9 billion in 2003. The air transportation industry accounted for about a fourth of capital spending with $10.7 billion, down 13.0 percent from 2002, and accounted for most of this sectors spending decrease for equipment. The truck transportation industry spent $9.1 billion, about the same as the prior year. The rail transportation industry with spending of $6.5 billion increased 2.2 percent in 2003. The pipeline transportation of natural gas industry, with spending of $4.4 billion in 2003, decreased 20.5 percent from the prior year.

Wholesale trade

The wholesale trade sector spent $28.4 billion on capital expenditures in 2003. The durable goods industry spent $19.1 billion, and the nondurable goods industry spent $9.4 billion.

Other services (except public administration)

This sector, which includes various types of organizations and membership groups, repair and maintenance services, and personal services, had $26.1 billion in capital expenditures in 2003. The religious, social advocacy, and organizations industry was the largest spender in 2003, with $17.6 billion.

Professional, scientific, and technical services

This sector spent $24.9 billion for capital goods in 2003. Combined, the computer systems design industry with spending of $5.5 billion, scientific research and development with spending of $4.5 billion, and management, scientific, and technical consulting with spending of $3.1 billion accounted for 52.9 percent of this sectors spending.

Construction

The construction sector spent $23.1 billion for capital expenditures in 2003. Special trade contractors, with spending of $10.2 billion, decreased 21.2 percent from the prior year.

Accommodation and food services

This sectors capital spending in 2003 amounted to $21.0 billion. The food services and drinking places industry spent $13.2 billion for capital expenditures in 2003. The traveler accommodation services industry, which includes hotels and casino hotels, spent $7.8 billion on capital expenditures, down 28.0 percent in 2003.

Educational services

The educational services sector spent $16.6 billion on capital expenditures in 2003, a decrease of about 15.0 percent from the prior year, due mainly to a $2.7 billion spending decrease on new and used structures. Spending for structures totaled $11.9 billion and spending for equipment totaled $4.7 billion.

Administrative and support and waste management

This sector spent $15.6 billion for capital goods in 2003. The office administrative support industry spent $6.0 billion for capital goods, an increase of 49.9 percent from the prior year.

Arts, entertainment, and recreation

This sector spent $11.0 billion for capital goods in 2003, a decrease of 16.3 percent from the prior year. The amusement, gambling, and recreation industry spent $6.7 billion. This represents a decrease of 29.9 percent from the prior year.

Note: Revised 2002 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.

In accordance with federal law governing census reports (Title 13 of the United States Code), no data are published that would disclose the operations of an individual establishment or company. Disclosure limitation is the process for protecting the confidentiality of data. A disclosure would occur if someone could use published statistical information to infer the identity or operations of a business that has provided information under a pledge of confidentiality. Disclosure suppression protects the confidentiality of individual businesses by withholding (suppressing) the cell values in tables of aggregate data for cases where only a few businesses are represented or dominate the statistic presented.

Prior to June 28, 2005 the 2003 ACES publication contained two errors/omissions:

• In the Introduction, Table A (page viii), the first two columns should be in millions, not billions, of current dollars.
• In Table 2a on page 3, the phrase "Millions of current dollars." was omitted from the heading.