Manufacturing Drives Capital Spending
According to a U.S. Census Bureau’s report, capital equipment expenditures made by manufacturing companies totaled $214.7 billion in 2000. This eclipsed the information sector by $51 billion.
In 2000, U.S. businesses invested $1.17 trillion in new and used capital goods, up 12 percent from 1999. Total spending on new structures was $368 billion, with $758 billion being spent on new equipment.
The manufacturing sector’s $214.7 billion in investment accounted for 19.5 percent of the country’s total expenditures on capital goods. This is an increase of 9 percent from 1999. Of that total, $175 billion was spent on equipment, nearly one quarter of all investment in equipment.