Census Releases New Business Capital Spending Survey Results

The Annual Capital Expenditures Survey (ACES) is part of acomprehensive program designed to provide moredetailed and timely information on capital investment instructures and equipment by nonfarm businesses. Thedata are used to improve the quality of current economicindicators of business investments, as well as the quarterlyestimates of gross domestic product. The data alsoprovide facts about trends in capital expenditures usefulfor identifying business opportunities, product development,and business planning.

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.