July 13, 2018

New Foreign Direct Investment in the United States: 2017

The U.S. Bureau of Economic Analysis indicated that, “Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses amounted to $259.6 billion (preliminary) in 2017.” In 2016, there was a decrease in expenditure by 32 percent from $379.7 billion (revised) which was below the annual average of $359.9 billion for 2014-2016. Additionally, majority of the total expenditures was accounted for in the acquisitions of existing businesses, as noted in previous years.

“In 2017, expenditures for acquisitions were $253.2 billion, expenditures to establish new U.S. businesses were $4.1 billion, and expenditures to expand existing foreign-owned businesses were $2.4 billion.” However, for projects initiated in 2017, planned total expenditures inclusive of first-year and planned future expenditures were $278 billion.

 

Expenditures by industry, country, and state in 2017

Expenditures in manufacturing accounted for the largest share among major industries as it was recorded at $103.7 billion, that is 40 percent of total expenditures. Food manufacturing was deemed the largest expenditures within the manufacturing industry at $34 billion while information expenditures and expenditure in real estate, rental and leasing were at $25.7 billion and $17 billion, respectively.

Notably, Canada was recorded as the largest investing country, with an expenditure of $66.2 billion, followed by the United Kingdom ($40.9 billion), Japan ($34.0 billion), and France ($23.1 billion).

In relation to region, in 2017, Europe contributed to 40 percent of the new investment. While, by U.S. state, the largest expenditures were in California ($41.6 billion), Texas ($39.7 billion), and Illinois ($26.0 billion).

 

 

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