In 2004, U.S. businesses invested $1.05 trillion in both new and used capital goods. This spending level is up 7.4 percent from the revised 2003 total of $975.0 billion. This increase follows consecutive declines of 2.3 percent in 2003 and 10.0 percent in 2002.

Spending on new structures and equipment in 2004 accounted for $956.6 billion or 91.3 percent of total expenditures, an increase of 8.1 percent from 2003. Expenditures for structures totaled $371.9 billion, with $327.0 billion (87.9 percent) spent for new structures. Investment in new structures increased 7.1 percent from the prior year. Expenditures for equipment totaled $675.6 billion, with $629.6 billion (93.2 percent) spent for new equipment, an increase of 8.7 percent from 2003.

Companies with employees accounted for $958.6 billion, or 91.5 percent of 2004 investment spending, an increase of 8.1 percent from 2003. These companies invested $338.6 billion in structures. Their investment in equipment amounted to $620.0 billion, an increase of 8.2 percent from 2003. Of the 135 industries published in this report, 44 had a statistically significant increase in spending, 20 had a statistically significant decrease, and 71 spent about the same as the prior year.

Capital expenditures by companies without employees in 2004 totaled $88.9 billion, or 8.5 percent of total business investment. Approximately 63 percent of this spending or $55.6 billion was for equipment.

• Tables
  

Highlights of capital expenditures by business sector for companies with employees

[Business sector data are based on the 2002 North American Industry Classification System]

Manufacturing

The manufacturing sector spent $156.9 billion on capital goods in 2004, an increase of 5.2 percent from 2003. Of the total spending by this sector, $32.2 billion was for structures, and $124.7 billion was for equipment.

Investment spending by durable goods manufacturers totaled $85.1 billion, an increase of 6.0 percent from prior year. Of this total, $71.1 billion, was for equipment, while expenditures for structures amounted to $13.9 billion. The motor vehicle and parts industry was the largest durable goods investor, spending $21.7 billion in 2004, about the same as the prior year. The semiconductor industry was the second largest durable goods investor, spending $9.8 billion, an increase of 10.9 percent from 2003.

Nondurable goods manufacturers spent $71.8 billion on capital goods in 2004, about the same as the prior year. Spending for structures in 2004 was $18.3 billion, and for equipment, $53.5 billion. The food manufacturing industry spent $14.7 billion, an increase of 19.8 percent from prior year. The pharmaceutical and medicine manufacturing industry spent $9.5 billion in 2004, a decrease of 21.5 percent from the prior year.

Finance and insurance

The finance and insurance sector spent $153.2 billion on capital goods in 2004. This sectors spending increased 26.9 percent from the prior year. Of this sectors spending, $43.7 billion was for structures, and $109.5 billion was for equipment. The leading industry spender for this sector was nondepository credit intermediation (i.e., sales and lease financing, and credit card issuing) at $80.0 billion, an increase of 15.8 percent from 2003.

Real estate and rental and leasing

This sector spent $92.2 billion on capital goods in 2004, accounting for 9.6 percent of total capital expenditures by companies with employees. The automotive equipment rental and leasing industry was the leading spender in 2004 at $44.2 billion with virtually all spending in equipment. The real estate industry was the second leading spender in this sector at $31.6 billion with 86.2 percent spent on structures.

Information

The information sector spent $83.5 billion on capital goods in 2004. Of this sectors spending, $28.6 billion was for structures, and $54.9 billion was for equipment. The leading industry spenders in the sector were the wired telecommunications carriers at $24.0 billion, down from $25.7 billion in 2003, and wireless telecommunication carriers at $24.0 billion, up from $21.0 billion in 2003.

Retail trade

In 2004 capital spending by the retail trade sector was $71.7 billion, an increase of 8.9 percent from 2003. Of this sectors spending, $33.2 billion was for structures and $38.5 billion was for equipment. The other retail trade stores, including gasoline stations industry was the leading spender at $26.4 billion in 2004, with $11.7 billion in structures and $14.8 billion in equipment. The general merchandise stores industry spent $17.0 billion in 2004, an increase of 12.0 percent from the prior year.

Health care and social assistance

The health care and social assistance sector spent $65.3 billion for capital expenditures in 2004. Spending by general medical and surgical hospitals increased 6.7 percent from prior year to $36.3 billion in 2004. This industry was the leading spender in the sector. The nursing and residential care facilities industry spent $9.4 billion in 2004, an increase of 36.6 percent from the prior year.

Mining

The mining sector spent $53.7 billion on capital goods in 2004. This sector spent more on structures than equipment, $36.7 billion and $17.0 billion respectively. The oil and gas extraction industry led this sectors spending with $42.7 billion on capital expenditures, and accounted for 79.6 percent of this sectors overall spending.

Utilities

The utilities sector spent $50.1 billion on capital goods in 2004, a decrease of 8.2 percent. This follows a decrease of 16.7 percent from the prior year. The electric power generation and distribution industry spent $41.4 billion, or 82.7 percent of this sectors investment, down 11.7 percent in 2004. The natural gas distributors industry spent $6.0 billion on capital goods, up 11.7 percent from prior year.

Transportation and warehousing

Investment in this sector was $47.7 billion in 2004, about the same as 2003. The truck transportation industry spent $10.8 billion, about the same as the prior year. The air transportation industry spent $10.1 billion, a decrease of 5.8 percent from 2003. The rail transportation industry with spending of $7.2 billion, increased 9.8 percent from 2003.

Wholesale trade

The wholesale trade sector spent $31.9 billion on capital expenditures in 2004, an increase of 22.7 percent from 2003. The durable goods industry spent $19.4 billion, and the nondurable goods industry spent $12.1 billion on capital expenditures.

Construction

The construction sector spent $28.7 billion for capital expenditures in 2004, up 23.8 percent from the prior year. Special trade contractors, which accounted for nearly one-half of this sectors spending, increased 41.0 percent from the prior year to $13.7 billion.

Professional, scientific, and technical services

This sector spent $26.9 billion for capital goods in 2004, up 8.8 percent from the prior year. The computer systems design industry with spending of $7.6 billion, increased 39.9 percent from 2003. This industry accounted for nearly 30 percent of this sectors spending.

Accommodation and food services

This sector’s capital spending in 2004 amounted to $20.6 billion. The food services and drinking places industry spent $11.4 billion on capital expenditures in 2004. The traveler accommodation services industry, which includes hotels and casino hotels, spent $9.3 billion on capital expenditures in 2004.

Other services (except public administration)

This sector, which includes various types of business, religious, and social organizations, repair and maintenance services, and personal services, spent $19.7 billion on capital expenditures in 2004, down 24.3 percent from the prior year. The religious, grantmaking, social advocacy, and organizations industry was the largest spender in 2004 with $11.9 billion, a decrease of 32.6 percent from 2003.

Educational services

The educational services sector spent $19.0 billion on capital expenditures in 2004. Spending for structures totaled $13.8 billion and spending for equipment totaled $5.2 billion.

Administrative and support and waste management

This sector spent $17.5 billion on capital goods in 2004. The investigation, security, and services to buildings and dwellings industry spent $5.3 billion on capital goods and accounted for 30.1 percent of this sector’s spending.

Arts, entertainment, and recreation

This sector spent $12.2 billion on capital goods in 2004. The amusement, gambling, and recreation industry spent $8.0 billion, an increase of 19.6 percent from the prior year.

Note: Revised and restated 2003 Annual Capital Expenditures Survey data and associated relative standard error tables are included in this publication. It should be noted that the restatement differs from prior year revisions. Revisions are simply data changes made subsequent to the previous year’s publication. Restatement has to do with a change in classification definitions. Up until the 2004 survey year, estimates were published on a 1997 North American Industry Classification System (NAICS). The current year estimates are now published on a 2002 NAICS basis, thus some 2003 data have been redistributed under new respective codes. Further information regarding restating the 2003 ACES and associated relative standard error tables are found in Appendix C.]

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.