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The tables in this release are available in an XLS spreadsheet and the entire release is available in PDF format.
Thomas Anderson: (202) 606-9879 BEA 04-24
Foreign Direct Investors' Outlays to Acquire or
Establish U.S. Businesses Rose Modestly in 2003
In 2003, outlays by foreign direct investors to acquire or establish U.S. businesses rose
modestly. Outlays were $60.3 billion, up 11 percent from 2002, when outlays were $54.5
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Outlays for New Investment in the United
States by Foreign Direct Investors, 1980-2003
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Billion $
p Preliminary
__________________________
This news release is available on BEA's website at: www.bea.gov/newsreleases/rels.htm
billion. Outlays remained far below those in 1998-2001, when new investment outlays ranged
from $147.1 billion to $335.6 billion. As in other recent years, large investments of more than
$5 billion accounted for a sizable share of total outlays.
The persistence of reduced levels of outlays partly reflects weak conditions in some
industries, such as manufacturing and telecommunications, in which foreign direct investors
were active in recent years. It also reflects a sharp slowdown in worldwide merger and
acquisition activity in recent years.
Outlays in 2003 were boosted by a substantial increase in outlays in financial industries,
as foreign banks sought to gain access to the large U.S. banking and consumer credit markets.
Outlays in manufacturing and information, which accounted for a large share of the new
investment in 1998-2001, declined substantially.
Outlays from the United Kingdom and Germany increased, while outlays from France
and several other European countries fell substantially. Outlays from Japan declined for the third
consecutive year. There was a large increase in outlays from Australia.
Outlays in 2003
As in previous years, outlays to acquire existing U.S. businesses--$52.6 billion--
accounted for most of the total outlays. Outlays to establish new businesses were $7.7 billion.
By industry, outlays were largest in finance (except depository institutions) and insurance
($21.6 billion). Outlays in depository institutions, at $5.4 billion, were also relatively large,
rebounding from outlays of $0.6 billion in 2002. Outlays in information were $10.0 billion,
which consisted mostly of investments in broadcasting, and were down from $14.2 billion in
2002. Outlays in manufacturing continued to decline, falling from $16.4 billion in 2002 to $9.5
billion in 2003. Within manufacturing, outlays were largest in food ($2.7 billion) and in
computers and electronic products ($2.3 billion). Outlays in real estate fell to $2.6 billion in
2003, down from $5.3 billion in 2002.
By country of ultimate beneficial owner, outlays from the United Kingdom, which
increased from $12.2 billion in 2002 to $22.5 billion in 2003, were the largest. Outlays from
Germany ($9.0 billion) were also higher than in 2002, but outlays from several other European
countries, such as France ($1.1 billion), the Netherlands ($0.7 billion) and Switzerland ($0.5
billion), were far lower than in 2002. Outlays from Japan declined for the third consecutive year,
to $1.5 billion. Outlays from Australia rose considerably, to $11.3 billion. Outlays from Canada
rose to $6.9 billion in 2003 from $4.3 billion in 2002.
The ultimate beneficial owner is that person, proceeding up a U.S. affiliate's ownership
chain, beginning with and including the foreign parent, that is not owned more than 50 percent
by another person.
The estimates of outlays for 2003 are preliminary. The estimate of total outlays for 2002
has been revised up 4 percent from the preliminary estimate published last year.
Employment of newly acquired or established businesses
Newly acquired or established businesses employed 160,900 people in 2003, down from
218,500 in 2002. Finance (except depository institutions) and insurance, with 34,000 employees,
accounted for the largest share of employment in 2003. Manufacturing also accounted for a
large share of employment, with 33,100 employees.
* * *
Estimates in this report are based upon a Bureau of Economic Analysis survey that covers
(1) existing U.S. business enterprises in which foreign investors acquired, either directly or
through their U.S. affiliates, at least a 10 percent ownership interest and (2) new U.S. business
enterprises established by foreign investors or their U.S. affiliates, also using the 10 percent
ownership interest threshold.
Additional details on the new investments by foreign investors in 2003 will appear in the
June issue of the Survey of Current Business, the monthly journal of the Bureau of Economic
Analysis.
* * *
BEA's major national, international, regional, and industry estimates; the Survey of
Current Business; and BEA news releases are available without charge on BEA's Web site:
www.bea.gov
Summary BEA estimates are available on recorded messages at the time of public release
at the following telephone numbers:
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(202) 606-5306 Gross domestic product
606-5303 Personal income and outlays
606-5362 U.S. international transactions
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Most of BEA's estimates and analyses are published in the Survey of Current Business, BEA's monthly journal. Subscriptions and single copies of the printed Survey are for sale by the Superintendent of Documents, U.S. Government Printing Office. Internet: bookstore.gpo.gov; phone: 202-512-1800; fax: 202-512-2250; mail: Stop SSOP, Washington, DC 20402-0001.
Table 1. Investment Outlays by Type of Investment, 1992-2003 |
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[Millions of dollars] |
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By type of investment |
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|
|
|
|
Year |
Total |
U.S. businesses acquired |
U.S. businesses established |
|
|
|
|
1992 |
15,333 |
10,616 |
4,718 |
|
|
|
|
1993 |
26,229 |
21,761 |
4,468 |
|
|
|
|
1994 |
45,626 |
38,753 |
6,873 |
|
|
|
|
1995 |
57,195 |
47,179 |
10,016 |
|
|
|
|
1996 |
79,929 |
68,733 |
11,196 |
|
|
|
|
1997 |
69,708 |
60,733 |
8,974 |
|
|
|
|
1998 |
215,256 |
182,357 |
32,899 |
|
|
|
|
1999 |
274,956 |
265,127 |
9,829 |
|
|
|
|
2000 |
335,629 |
322,703 |
12,926 |
|
|
|
|
2001 |
147,109 |
138,091 |
9,017 |
|
|
|
|
2002 r |
54,519 |
43,442 |
11,077 |
|
|
|
|
2003 p |
60,320 |
52,580 |
7,741 |
|
|
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|
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|
|
|
|
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|
p Preliminary. |
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r Revised. |
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Source: U.S. Bureau of Economic Analysis |
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Table 2. Distribution of Investment Outlays by Size, 1992-2003 |
[Percent] |
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|
|
|
|
|
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 r |
2003 p |
Total outlays |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
$5 billion or more |
0 |
0 |
0 |
(D) |
0 |
0 |
55 |
55 |
48 |
30 |
(D) |
(D) |
$2 billion - $4.999 billion |
0 |
(D) |
27 |
18 |
29 |
12 |
11 |
16 |
20 |
22 |
18 |
(D) |
$100 million - $1.999 billion |
42 |
51 |
51 |
48 |
55 |
67 |
27 |
24 |
27 |
40 |
45 |
38 |
Less than $100 million |
58 |
(D) |
22 |
(D) |
16 |
21 |
7 |
5 |
5 |
9 |
(D) |
8 |
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D Suppressed to avoid disclosure of data of individual companies. |
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p Preliminary. |
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r Revised. |
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Source: U.S. Bureau of Economic Analysis |
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Table 3. Investment Outlays by Industry of U.S. Business Enterprise, 2000-2003 |
[Millions of dollars] |
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|
|
|
|
|
2000 |
2001 |
2002 r |
2003 p |
All industries |
335,629 |
147,109 |
54,519 |
60,320 |
|
|
|
|
|
Manufacturing |
143,285 |
37,592 |
16,446 |
9,538 |
Food |
(D) |
(D) |
(D) |
2,699 |
Beverages and tobacco products |
3,722 |
582 |
(D) |
(D) |
Petroleum and coal products |
(D) |
(D) |
(D) |
235 |
Chemicals |
15,016 |
4,636 |
1,232 |
1,213 |
Plastics and rubber products |
3,154 |
622 |
891 |
519 |
Nonmetallic mineral products |
6,324 |
425 |
1,228 |
364 |
Primary metals |
379 |
692 |
514 |
(D) |
Fabricated metal products |
638 |
758 |
94 |
(D) |
Machinery |
1,213 |
(D) |
586 |
83 |
Computers and electronic products |
42,600 |
10,052 |
590 |
2,328 |
Electrical equipment, appliances, and components |
8,084 |
(D) |
948 |
155 |
Transportation equipment |
3,230 |
470 |
750 |
146 |
Other |
6,529 |
5,214 |
2,170 |
1,559 |
Wholesale trade |
8,561 |
3,982 |
871 |
623 |
Retail trade |
1,672 |
1,913 |
551 |
964 |
Information |
67,932 |
27,599 |
14,181 |
10,015 |
Publishing industries |
10,135 |
9,545 |
(D) |
1,488 |
Motion pictures and sound recording industries |
(D) |
1,179 |
(D) |
121 |
Broadcasting and telecommunications |
(D) |
15,529 |
2,196 |
7,593 |
Information services and data processing services |
12,228 |
1,345 |
(D) |
813 |
Depository institutions |
2,636 |
5,709 |
613 |
5,416 |
Finance (except depository institutions) and insurance |
44,420 |
40,780 |
4,344 |
21,622 |
Real estate and rental and leasing |
4,526 |
3,572 |
5,266 |
2,607 |
Professional, scientific, and technical services |
32,332 |
7,044 |
4,012 |
1,397 |
Other industries |
30,264 |
18,917 |
8,234 |
8,139 |
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D Suppressed to avoid disclosure of data of individual companies. |
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p Preliminary. |
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r Revised. |
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Source: U.S. Bureau of Economic Analysis |
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Table 4. Investment Outlays by Country of Ultimate Beneficial Owner, 2000-2003 |
[Millions of dollars] |
|
|
|
|
|
|
2000 |
2001 |
2002 r |
2003 p |
All countries |
335,629 |
147,109 |
54,519 |
60,320 |
|
|
|
|
|
Canada |
28,346 |
16,646 |
4,333 |
6,858 |
Europe |
249,167 |
78,328 |
39,644 |
39,076 |
France |
26,149 |
5,772 |
15,196 |
1,135 |
Germany |
18,452 |
12,733 |
3,067 |
9,034 |
Netherlands |
47,686 |
14,879 |
3,476 |
712 |
Switzerland |
22,789 |
16,468 |
2,656 |
534 |
United Kingdom |
110,208 |
17,095 |
12,188 |
22,492 |
Other Europe |
23,883 |
11,381 |
3,061 |
5,169 |
Latin America and Other Western Hemisphere |
15,400 |
15,274 |
3,487 |
644 |
South and Central America |
5,334 |
431 |
373 |
172 |
Other Western Hemisphere |
10,066 |
14,843 |
3,114 |
472 |
Africa |
(D) |
(D) |
(D) |
(D) |
Middle East |
947 |
(D) |
(D) |
198 |
Asia and Pacific |
40,282 |
11,383 |
5,131 |
13,518 |
Australia |
(D) |
4,869 |
1,565 |
11,313 |
Japan |
26,044 |
5,345 |
3,275 |
1,487 |
Other Asia and Pacific |
(D) |
1,169 |
291 |
718 |
United States 1 |
(D) |
(D) |
804 |
(D) |
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D Suppressed to avoid disclosure of data of individual companies. |
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p Preliminary. |
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r Revised. |
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NOTE. For investments in which more than one investor participated, each investor and each investor's outlays are classified by country of each ultimate beneficial owner. |
1. The United States is shown as the country of ultimate beneficial owner for businesses newly acquired or established by foreign investors that are, in turn, ultimately owned by persons located in the United States. |
Source: U.S. Bureau of Economic Analysis |
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Table 5. Selected Operating Data of U.S. Business Enterprises Acquired or Established, |
by Industry of U.S. Business Enterprise, 2002-2003 |
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2002 r |
2003 p |
Millions of dollars |
Thousands of employees |
Hectares of land 1 |
Millions of dollars |
Thousands of employees |
Hectares of land 1 |
Total assets |
Sales |
Net income |
Total assets |
Sales |
Net income |
All industries |
105,516 |
55,680 |
1,675 |
218.5 |
106,567 |
232,643 |
54,114 |
1,709 |
160.9 |
45,016 |
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|
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|
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|
|
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|
Manufacturing |
24,237 |
21,809 |
213 |
73.4 |
10,886 |
11,402 |
8,801 |
58 |
33.1 |
1,145 |
Wholesale trade |
1,240 |
2,284 |
(D) |
3.7 |
58 |
721 |
2,863 |
9 |
3.4 |
(D) |
Retail trade |
646 |
1,276 |
(D) |
10.7 |
119 |
1,558 |
6,516 |
(D) |
27.5 |
(D) |
Information |
15,656 |
6,746 |
319 |
25.5 |
1,127 |
22,954 |
12,015 |
-773 |
14.6 |
518 |
Depository institutions |
4,503 |
265 |
33 |
0.9 |
(D) |
48,641 |
3,130 |
(D) |
12.3 |
223 |
Finance (except depository institutions) and insurance |
12,369 |
1,606 |
85 |
5.2 |
(D) |
122,426 |
12,102 |
(D) |
34.0 |
38 |
Real estate and rental and leasing |
12,366 |
2,723 |
262 |
2.3 |
6,649 |
3,309 |
461 |
34 |
1.1 |
4,327 |
Professional, scientific, and technical services |
1,274 |
847 |
-59 |
4.5 |
(D) |
1,525 |
876 |
-162 |
3.9 |
30 |
Other industries |
33,225 |
18,126 |
737 |
92.3 |
87,640 |
20,106 |
7,348 |
268 |
31.0 |
38,211 |
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D Suppressed to avoid disclosure of data of individual companies. |
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p Preliminary. |
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r Revised. |
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1. One hectare equals 2.471 acres. Thus, for all industries, acres of land owned in 2002 were 263,327, and in 2003 were 111,235. |
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NOTE. For newly acquired businesses, the data cover the most recent financial reporting year preceding acquistion. For newly established businesses, the data are projections for the first full year of operations. |
Source: U.S. Bureau of Economic Analysis |
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