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Patricia Buscher                                                CB02-47
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e-mail: pio@census.gov                             Quotes & Sound Bites
                                
    U.S. Businesses Invested Record Amount in Capital Goods
                 in 2000, Census Bureau Reports

  U.S. businesses invested a record $1.172 trillion in capital goods in
2000, a 12 percent increase from $1.047 trillion in 1999, according to a
report released today by the Commerce Department's Census Bureau.

  The report, Annual Capital Expenditures: 2000 [pdf], defines capital 
goods as business assets with an expected use of more than one year that 
generally are depreciated.

  Businesses spent $1.086 trillion, or 93 percent of all their 2000
expenditures, on new equipment and structures. Expenditures on used
equipment and structures accounted for the rest. More than twice as much
was spent on new equipment ($758 billion) than on new structures ($328
billion).

  Businesses with employees accounted for 94 percent ($1.101 trillion) of
all capital investment in 2000. Businesses without employees invested $71
billion.

  Other highlights:  
Manufacturing businesses with employees led
all industry sectors by spending $215 billion on capital goods, up 9
percent from 1999. About $175 billion of this went for equipment. Durable
goods manufacturers invested $135 billion, while nondurable goods
manufacturers invested $80 billion.  Although the motor vehicle and parts
industry was the largest durable goods investor, spending $30 billion,
spending by the semiconductor industry at $26 billion increased
significantly over 1999 by 60 percent.


The information sector showed the second largest capital expenditures
in 2000 at $164 billion. That was up nearly 34 percent and followed a 1999
increase of 27 percent. The wired telecommunications carriers industry led
this sector's spending with $78 billion, up 31 percent. Wireless carriers,
at $25 billion, followed and were up 77 percent.

The finance and insurance sector spent $134 billion on capital
expenditures, with $111 billion of that for equipment. The leading
industry spender in this sector was nondepository credit intermediation
(e.g., sales and lease financing, and credit card-issuing companies) with
$82 billion, of which 98 percent was for equipment.

The real estate and rental and leasing sector spent $98 billion on
capital goods. Leading industry spenders in this sector were automotive
equipment rental and leasing ($44 billion), real estate ($34 billion), and
commercial and industrial equipment rental and leasing ($18 billion).

Retail trade spent $70 billion on capital goods, with food and
beverage stores, general merchandise stores and other retail stores
(including gas stations) spending $52 billion.
  
The utilities sector's capital expenditures totaled $61 billion, up 43
percent from 1999. Nearly $53 billion, or 86 percent of this sector's
spending, was by the electric power generators and distributors industry.
  
The mining sector invested $43 billion on capital expenditures. The
oil and gas extraction industry led this sector's capital goods spending
with $32 billion, up nearly 55 percent from the prior year. 
   The report, from the Annual Capital Expenditures Survey, shows capital
investment spending for 130 separate industry categories based on the 1997
North American Industry Classification System. It covers spending on
buildings and other structures, machinery and equipment, furniture,
computers and vehicles. While the report shows estimates of investment by
all nonfarm businesses, only businesses with employees were asked to
report investment by industry.

  Data in the report are subject to sampling variability, as well as
nonsampling errors. Sources of nonsampling error include errors of
response, nonreporting and coverage. Further details concerning survey
design, methodology and data limitations are available in the full report.