2014 Annual Capital Expenditures Survey

In 2014, U.S. businesses (nonfarm) invested $1.6 trillion in new and used buildings, structures, machinery and equipment (including computer software), up $110.8 billion (7.4 percent) from 2013. Investment spending in the mining sector totaled $228.7 billion in 2014, up $26.5 billion (13.1 percent) from 2013, with the oil and gas extraction industry accounting for $196.0 billion of the total spending, up $29.1 billion (17.5 percent) from 2013.

The Census Bureau’s Annual Capital Expenditures Survey provides estimates of all business expenditures during the year for new and used structures and equipment chargeable to asset accounts for which depreciation or amortization accounts are ordinarily maintained. Expenditures also include capitalized leasehold improvements and capitalized interest charges on loans used to finance capital projects.

These estimates are provided at the economic sector level, based on the North American Industry Classification Systems (NAICS), as well as for industries within those sectors at the NAICS three-digit and selected four-digit levels.

These statistics provide a relevant, timely and accurate measure of current business conditions and are also an important input for federal agencies constructing composite national economic measures. These economic measures include the Bureau of Economic Analysis’ estimates of private-fixed investments, a major component of gross domestic product; the Bureau of Labor Statistics’ estimates of capital stocks for productivity analysis; and the Federal Reserve Board’s Flow of Funds accounts.

Other highlights:

·        Expenditures for new and used structures totaled $636.2 billion in 2014. Spending on new and used equipment totaled $965.9 billion.

·        Companies with employees accounted for $1.5 trillion (94.3 percent) of total capital spending in 2014.

·        The finance and insurance sector invested $153.4 billion in capital goods in 2014, an increase of $15.6 billion (11.3 percent) from 2013. The leading spender in this sector was the nondepository credit intermediation industry (e.g., sales and lease financing, and credit card issuing) at $98.1 billion, an increase of 16.1 percent from 2013.

·        Investment spending in the information sector totaled $131.3 billion in 2014, an increase of $7.5 billion (6.0 percent) from 2013. The leading industry spender in this sector was wired telecommunications carriers at $48.6 billion, showing no significant change from 2013.