EMBARGOED UNTIL: 10 A.M. EST, DECEMBER 18, 1996 (WEDNESDAY) Public Information Office CB96-215 301-457-3030/301-457-3670 (fax) 301-457-4067 (TDD) e-mail: pio@census.gov Charles Funk 301-763-2542 BUSINESS INVESTMENT IN STRUCTURES AND EQUIPMENT TOPS $549 BILLION IN 1994 Businesses with five or more employees invested $549.3 billion for new and used capital goods in 1994, a 12 percent increase from 1993, according to a new report by the Commerce Department's Census Bureau. Capital goods are items that are ordinarily depreciated by businesses, including buildings and other structures, machinery and equipment, furniture and fixtures, computers and vehicles. The data are relied upon to identify trends in capital expenditures by businesses, develop monetary policy, analyze business asset depreciation, and improve estimates of capital stock for productivity analysis. Industry analysts use the data for market analysis, economic forecasting, product development, and business planning. Under Secretary for Economic Affairs Everett Ehrlich says, "The Annual Capital Expenditures Survey data released today are a good example of how the Census Bureau is working to keep our economic statistics on pace with a rapidly growing, dynamic U.S. economy. The rapid expansion of capacity they depict is part of the success story of the U.S. economy. The numbers are valuable to private sector decision-makers and government policy-makers alike." Expenditures for buildings and other structures amounted to $168.1 billion, with $155.3 billion spent on new structures. Expenditures for equipment amounted to $376.3 billion, with $358.5 billion going for new equipment. Purchases of new structures and equipment together amounted to $513.8 billion, or 93 percent of the total capital expenditures for 1994. The report entitled, "Annual Capital Expenditures: 1994," ACE/94, provides information on capital investment by nonfarm businesses, in new and used structures and equipment, for 94 industry categories. The report contains data published for the first time by the Census Bureau on capital expenditures for specific types of structures and classifications of construction (construction of new facility, acquisition of existing facility, remodeling, renovation, or modernization of existing structures). The data in this report are subject to sampling variability as well as nonsampling variability. Sources of nonsampling variability include errors of response, nonreporting, and coverage. Measures of sampling variability, presented as relative standard errors, are shown in the publication tables. The report also is available on the Internet. The address for this information is: http://www.census.gov/csd/ace-X-The Census Bureau--preeminent collector and provider of timely, relevant, and quality data about the people and economy of the United States. In over 100 surveys annually and 20 censuses a decade, evolving from the first census in 1790, the Census Bureau provides official information about America's people, businesses, industries, and institutions.
