Capital Spending Up 10 Percent, Reaches $1.1 Trillion

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.

Source: U.S. Census

This entry was posted on Friday, February 23rd, 2007 at 5:45 pm and is filed under Business and economics, Investments. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.