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New Foreign Direct Investment in the United States: 2017

Summary:
Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled 9.6 billion (preliminary) in 2017. Expenditures were down 32 percent from 9.7 billion (revised) in 2016 and were below the annual average of 9.9 billion for 2014-2016. As in previous years, acquisitions of existing businesses accounted for a large majority of total expenditures. In 2017, expenditures for acquisitions were 3.2 billion, expenditures to establish new U.S. businesses were .1 billion, and expenditures to expand existing foreign-owned businesses were .4 billion. Planned total expenditures, which include both first-year and planned future expenditures until completion for projects initiated in 2017, were 8.0 billion. Expenditures by

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Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $259.6 billion (preliminary) in 2017. Expenditures were down 32 percent from $379.7 billion (revised) in 2016 and were below the annual average of $359.9 billion for 2014-2016. As in previous years, acquisitions of existing businesses accounted for a large majority of total expenditures.

New Foreign Direct Investment in the United States: 2017

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. Planned total expenditures, which include both first-year and planned future expenditures until completion for projects initiated in 2017, were $278.0 billion.

Expenditures by industry, country, and state in 2017

By industry, expenditures for new direct investment were distributed widely. Expenditures in manufacturing, at $103.7 billion, accounted for 40 percent of total expenditures, the largest share among major industries. Within manufacturing, expenditures were largest in food manufacturing ($34.0 billion). There were also large expenditures in information ($25.7 billion) and in real estate, rental, and leasing ($17.0 billion).

By country of ultimate beneficial owner (UBO), a small number of countries accounted for most of the investment. The largest investing country was Canada, with expenditures of $66.2 billion, followed by the United Kingdom ($40.9 billion), Japan ($34.0 billion), and France ($23.1 billion). By region, Europe contributed 40 percent of the new investment in 2017.

By U.S. state, the largest expenditures were in California ($41.6 billion), Texas ($39.7 billion), and Illinois ($26.0 billion).

Greenfield expenditures

Greenfield investment expenditures–expenditures to establish new U.S. businesses and to expand existing foreign-owned U.S. businesses–were $6.4 billion in 2017. Total planned expenditures until completion for greenfield investment initiated in 2017, which include both first-year and future expenditures, were $24.8 billion.

By U.S. industry, greenfield expenditures in 2017 were largest in manufacturing at $1.6 billion, accounting for 24 percent of total greenfield expenditures. By U.S. state, greenfield expenditures in 2017 were largest in Delaware ($1.2 billion) and New York ($0.6 billion).

Employment by newly acquired, established, or expanded foreign-owned businesses

In 2017, employment at newly acquired, established, or expanded foreign-owned businesses in the United States was 554,300 employees. Current employment of acquired enterprises was 549,700. 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 577,200.

By industry, accommodation and food services accounted for the largest number of employees (255,100), followed by manufacturing (109,000) and administration, support, and waste management services (55,500). By country of UBO, France accounted for the largest number of employees (47,700), followed by the United Kingdom (42,100) and Canada (39,400).

By U.S. state, Virginia was in the largest employment category, but the employment value is suppressed due to confidentiality. The next largest states in employment were Missouri (63,000), California (55,700), and Florida (55,500). Employment for acquired entities that operate in multiple states is attributed to the state where the greatest number of employees are based.

Updates to 2016 Expenditures for New Foreign Direct Investment in the United StatesMillions of dollars
  Previously Published Estimate Revised Estimate
First-year expenditures 373,440 379,728
U.S. businesses acquired 365,700 370,317
U.S. businesses established 5,565 6,504
U.S. businesses expanded 2,175 2,907
Planned total expenditures 387,739 394,964
U.S. businesses acquired 365,700 370,317
U.S. businesses established 13,569 15,468
U.S. businesses expanded 8,471 9,178
 

Next release: July 2019
New Foreign Direct Investment in the United States, 2018

Bureau of Economic Analysis
The BEA Advisory Committee advises the Director of BEA on matters related to the development and improvement of BEA’s national, regional, industry, and international economic accounts, especially in areas of new and rapidly growing economic activities arising from innovative and advancing technologies, and provides recommendations from the perspectives of the economics profession, business, and government.

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