2017 Capital Spending Report: U.S. Capital Spending Patterns 2006-2015

Data in this report are from the U.S. Census Bureau's 2006 to 2015 Annual Capital Expenditures Survey (ACES), which collects information on expenditures for new and used structures and equipment by all U.S. nonfarm businesses. The Capital Spending Report series covers spending by 2-digit North American Industry Classification System (NAICS) industry sector in a 10-year moving window ending with the most recent ACES reference year— 2015 in the current report. Estimates for penultimate years in each report are subject to revision.

The report looks closely at investment shares over time to see which are growing (shrinking) and, in theory, where firms and capital markets perceive the greatest economic opportunity. Annual spending estimates are not adjusted for inflation. This may affect the utility of year-to-year or longer-term comparisons of spending levels, especially when inflation rates are volatile and vary across industry groups and asset categories. However, with some exceptions (e.g., declines in information technology equipment prices, which may have a negative effect on investment totals in industries that invest heavily in IT equipment), comparisons of shares of overall investment across industry groups are less affected by inflation.

The ACES collects industry detail only for companies with employees; hence, estimates of capital spending by NAICS industry sector are for employer businesses. On average, over the period 2006-2015, these firms accounted for over 90 percent of total annual structures and equipment spending by U.S. nonfarm businesses.

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Charts

Summary Highlights of Total Capital Spending

Between 2006 and 2015, total spending by U.S. nonfarm businesses increased $328.7 million (25.1 percent) from $1,309.9 billion in 2006 to $1,638.6 billion in 2015. (Table 1a) , (Table 5a)

Since the Great Recession ended in 2009, capital spending by all U.S. nonfarm businesses has increased annually for each consecutive year from 2011 to 2015. (Chart 1), (Table 1a)

In 2006, capital spending by all U.S. nonfarm businesses totaled $1,309.9 billion. In 2007, the first year that includes the Great Recession in its last quarter, spending increased 3.4 percent. As the recession continued in 2008 and 2009, capital spending showed no significant change in 2008. However, in 2009, capital investments fell 20.6 percent to $1,090.7 billion. There was no significant change in capital investments in 2010; however, spending increased 12.4 percent in 2011, 14.5 percent in 2012, 4.8 percent in 2013, 7.1 percent in 2014, and 2.5 percent in 2015. At the end of the 10-year period from 2006 to 2015, capital spending totaled $1,638.6 billion. (Table 1a) , (Table 5a)

General Highlights

In 2006, expenditures for structures totaled $488.7 billion. Total spending for structures increased 7.5 percent in 2007, and 7.1 percent in 2008. However, spending for structures began a two-year decline in 2009, dropping 20.1 percent the first year and another 4.4 percent in 2010. Spending increased in 2011 by 9.8 percent and in 2012 by 20.9 percent. Spending showed no significant change in 2013. Spending increased in 2014 by 10.6 percent. Spending showed no significant change in 2015. At the end of the 10-year period from 2006 to 2015, capital spending totaled $645.7 billion, an increase of $157.0 billion (32.1 percent) from 2006 spending. (Chart 1), (Table 1a), (Table 5a)

In 2006, equipment expenditures totaled $821.2 billion. Equipment expenditures showed no significant change in 2007 and 2008 but then decreased 21.0 percent in 2009, dropping to $641.1 billion. Spending then increased for the next six years, 5.5 percent in 2010, 14.1 percent in 2011, 10.6 percent in 2012, 6.6 percent in 2013, 4.9 percent in 2014, and 4.0 percent in 2015. At the end of the 10-year period from 2006 to 2015, equipment expenditures totaled $992.9 billion, an increase of $ 171.7 billion (20.9 percent) from 2006 spending. (Chart 1), (Table 1a), (Table 5a)

*These data are subject to sampling/non-sampling error.

Summary Highlights for Companies with Employees

Between 2006 and 2015, total spending by U.S. nonfarm businesses with employees increased $327.6 million (26.9 percent) from $1,217.1 billion in 2006 to $1,544.7 billion in 2015. Spending for structures increased $149.7.0 billion from $453.9 billion in 2006 to $603.6 billion in 2015. Spending for equipment increased $177.8 billion (23.3 percent) from $763.2 billion in 2006 to $941.1 billion in 2015. (Chart 2) (Table 1a), (Table 5a)

*These data are subject to sampling/non-sampling error.

Sector Highlights for Companies with Employees

Sectors showing the largest absolute increases in their capital investments from 2006 to 2015 included mining (up $75.4 billion or 75.9 percent), utilities (up $60.5 billion or 86.7 percent), transportation and warehousing ($48.7 billion or 71.5 percent), manufacturing (up $47.2 billion or 24.5 percent), information (up $31.2 billion or 29.9 percent), and health care and social assistance (up $18.3 billion or 24.3 percent). (Chart 3), (Table 6a)