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Businesses invested $1.15 trillion in new and used structures and equipment in 2005, the largest increase since 2000, the U.S. Census Bureau reported today.
The 2005 level surpassed the 2004 total of $1.04 trillion by 10 percent, according to the Annual Capital Expenditures: 2005 [PDF] report, based on the Annual Capital Expenditures Survey (ACES).
Spending on new structures and equipment accounted for almost $1.07 trillion or 93.2 percent of the 2005 total. Nearly two-thirds of this spending ($702.2 billion) went for new equipment, with the rest ($365.7 billion) allocated to new structures.
These and other findings are included in the report, which defines capital goods as business assets that have an expected use of more than one year and are usually depreciated. The report shows estimates of investment by all nonfarm businesses, including businesses with and without employees.
In 2005, businesses with employees accounted for 92.8 percent ($1.06 trillion) of all capital investment. Only businesses with employees were asked to report by industry. Among these businesses:
The ACES report shows capital investment for 135 separate industry categories based on the 2002 North American Industry Classification System. In addition to structures and equipment, the report also covers spending on furniture, computers and vehicles.
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. More details concerning survey design, methodology and data limitations are available in the full report, which is available online at <www.census.gov/econ/aces/>.