2019-07-03 11:25:00
FOREIGN INVESTMENT IN U.S. UP 8.7%
U.S. BEA - Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $296.4 billion (preliminary) in 2018. Expenditures were up 8.7 percent from $272.8 billion (revised) in 2017 but were below the annual average of $338.1 billion for 2014–2017. As in previous years, acquisitions of existing businesses accounted for a large majority of total expenditures.
In 2018, expenditures for acquisitions were $287.3 billion, expenditures to establish new U.S. businesses were $5.3 billion, and expenditures to expand existing foreign-owned businesses were $3.8 billion. Planned total expenditures, which include both first-year and planned future expenditures, were $318.1 billion.
Expenditures by industry, country, and state in 2018
By industry, expenditures for new direct investment were mainly concentrated in manufacturing, which accounted for 67.4 percent of total expenditures, or $199.7 billion. Within manufacturing, expenditures were largest in chemical manufacturing ($142.3 billion). There were also notable expenditures in real estate, rental, and leasing ($22.1 billion) and information ($16.3 billion).
By country of ultimate beneficial owner (UBO), Germany and Ireland had the largest expenditures, but their values are suppressed due to confidentiality requirements. Canada ($32.5 billion) was the third largest investing country. By region, Europe contributed nearly three-quarters of new investment in 2018.
By U.S. state, Missouri received the largest investment, but its value is suppressed due to confidentiality requirements. New York ($63.0 billion), Texas ($31.1 billion), and California ($27.3 billion) also received significant investment.
Greenfield expenditures
Greenfield investment expenditures—expenditures to either establish a new U.S. business or to expand an existing foreign-owned U.S. business—were $9.1 billion in 2018. Total planned expenditures until completion for greenfield investment initiated in 2018, which include both first-year and future expenditures, were $30.8 billion.
By U.S. industry, greenfield expenditures in 2018 were largest in manufacturing ($2.6 billion) and real estate, rental, and leasing ($2.6 billion). By country of UBO, Canada ($2.4 billion) and Japan ($1.2 billion) had the largest expenditures. By U.S. state, Texas received the highest level of greenfield investment ($2.0 billion), followed by New York ($1.6 billion).
Employment by newly acquired, established, or expanded foreign-owned businesses
In 2018, employment at newly acquired, established, or expanded foreign-owned businesses in the United States was 430,600 employees. Current employment of acquired enterprises was 426,400. Total planned employment, which includes the current employment of acquired enterprises, the planned employment of newly established business enterprises when fully operational, and the planned employment associated with expansions, was 469,800.
By industry, manufacturing accounted for the largest number of employees (209,000), followed by retail trade (62,500). By country of UBO, Canada accounted for the largest number of employees (84,300), followed by the United Kingdom (68,900), and Ireland (68,300).
By U.S. state, California had the largest employment (102,000), followed by New York (55,300) and Texas (45,500). Employment for an acquired entity that operated in multiple states is attributed to the state in which it had the greatest number of employees.
Updates to 2017 Expenditures for New Foreign Direct Investment in the United States
Billions of dollars
Billions of dollars
| Previously Published Estimate | Revised Estimate | |
|---|---|---|
| First-year expenditures | 259.6 | 272.8 |
| U.S. businesses acquired | 253.2 | 261.5 |
| U.S. businesses established | 4.1 | 6.0 |
| U.S. businesses expanded | 2.4 | 5.3 |
| Planned total expenditures | 278.0 | 299.9 |
| U.S. businesses acquired | 253.2 | 261.5 |
| U.S. businesses established | 18.0 | 23.3 |
| U.S. businesses expanded | 6.8 | 15.2 |
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Earlier:
2019, July, 1, 11:20:00
U.S. SHALE OIL PROBLEMS
Based on a study of 40 US shale oil companies, looking at cash flow from operating activities, only four companies reported a positive cash flow balance in the first quarter of 2019.
2019, June, 27, 18:35:00
U.S. GREEN ENERGY PRICE: $4.7 TLN
Eliminating fossil fuels from the U.S. power sector, a key goal of the “Green New Deal” backed by many Democratic presidential candidates, would cost $4.7 trillion and pose massive economic and social challenges, according to a report released on Thursday by energy research firm Wood Mackenzie.
2019, June, 27, 18:10:00
U.S. GDP UP 3.1%
Real gross domestic product (GDP) increased at an annual rate of 3.1 percent in the first quarter of 2019 , according to the "third" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2018, real GDP increased 2.2 percent.
2019, June, 25, 12:50:00
U.S. FINANCIAL RISKS UP
In addition, a number of medium-term risks are growing. The financial system appears healthy but vulnerabilities in leveraged corporates and, potentially, in the nonbank system are elevated by historical standards. An abrupt reversal of the recent supportive financial market conditions or a deepening of ongoing trade disputes represent material risks to the U.S. economy, with concomitant negative outward spillovers. The U.S. public debt-to-GDP ratio is on an unsustainable path and is expected to continue rising throughout the medium-term, as aging related spending rises.
2019, June, 24, 12:10:00
6 UNDERVALUED ENERGY STOCKS ANEW
Let’s see which companies are still undervalued and which ones are out of my radar. Some of them reached their fair value and some other stopped to satisfy my parameters.
2019, June, 18, 17:15:00
U.S. INDUSTRIAL PRODUCTION UP 0.4%
Industrial production rose 0.4 percent in May after falling 0.4 percent in April. The indexes for manufacturing and mining gained 0.2 percent and 0.1 percent, respectively, in May; the index for utilities climbed 2.1 percent. At 109.6 percent of its 2012 average, total industrial production was 2.0 percent higher in May than it was a year earlier. Capacity utilization for the industrial sector moved up 0.2 percentage point in May to 78.1 percent, a rate that is 1.7 percentage points below its long-run (1972–2018) average.
