FOR IMMEDIATE RELEASE 10 A.M. EDT, MAY 6, 1997 (TUESDAY) Public Information Office CB97-79 301-457-3030/301-457-3670 (fax) 301-457-4067 (TDD) e-mail:pio@census.gov Charles Funk 301-763-2542 U.S. Businesses Increased Investment For Capital Goods In 1995 By 9.4 Percent Businesses with five or more employees invested $601.1 billion for capital goods in 1995, a 9.4 percent increase from 1994, according to a new report and Internet tables released today by the Commerce Department's Census Bureau. Capital goods are items whose expected use exceeds one year and are ordinarily depreciated by businesses, including buildings and other structures, machinery and equipment, furniture, computers and vehicles. Businesses with fewer than five employees spent $129.9 billion, bringing total investment to $731.1 billion in 1995. Ninety percent of spending was for new structures and equipment. Investment in new buildings and structures amounted to $205.7 billion of the $234.4 billion spent on all buildings and structures. Expenditures for new equipment totaled $454.9 billion of the $496.3 spent on all equipment. Other highlights from the report for businesses with five or more employees include: - The manufacturing sector led other sectors in expenditures for capital goods in 1995 by spending $181.0 billion, up 17.2 percent from 1994. Within manufacturing, the communications equipment and electronic components industry spent $26.8 billion, an increase of 84.3 percent over 1994. The motor vehicles and parts industry reduced expenditures to $l6.0 billion in 1995, down 11.3 percent. - The services sector ranked second by spending $134.2 billion (22.3 percent of total capital expenditures), up 8.4 percent from 1994. Expenditures were divided $43.1 billion for structures and $91.1 billion for equipment. - Expenditures in the utilities sector dropped to $38.4 billion in 1995, a decrease of 7.3 percent from 1994. The electric power generation, transmission and distribution industry accounted for virtually all the decline, down $3.2 billion or 13.9 percent. The report entitled, "Annual Capital Expenditures: 1995," ACE/95, provides capital investment data by nonfarm businesses for structures and equipment in 94 separate industry categories. The data are used to identify trends in capital expenditures by businesses, to analyze business asset depreciation and to improve estimates of capital stock for productivity analysis. Industry analysts use the data for market analysis, economic forecasting, product development and business planning. The data in this report are subject to sampling variability as well as nonsampling error including bias and variance from response, nonreporting and undercoverage. Further details concerning survey design, methodology and data limitations are contained in the full report. The Internet address for this report is http://www.census.gov/csd/ace or call the Public Information Office on 301-457-3030 for a paper copy.-X-The Census Bureau--pre-eminent 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.
