WASHINGTON: US businesses spent $296.3 billion on information and communication technology (ICT) equipment and computer software in 2008, an increase of 11.0 percent from 2007, according to the U.S. Census Bureau. This followed a 5.5 percent increase from 2006 to 2007.

The Information and Communication Technology Survey is a supplement to the bureau's Annual Capital Expenditures Survey.

"The Information and Communication Technology Survey allows users to evaluate productivity and economic growth prospects, and conduct market analyses, economic forecasting, product development and business planning," said Valerie Strang, chief of the Census Bureau's Business Investment Branch. "Specifically, it shows which sectors are investing in information and communication technologies, giving businesses insight into where they may find new opportunities."

Capitalized ICT spending (expenditures that are written off over time) was $204.8 billion in 2008, an increase of 17.7 percent from 2007. Of that total:

    * Purchases of ICT equipment increased by 20.5 percent to $133.0 billion.
    * Purchases and payroll for developing software increased by 12.8 percent to $71.9 billion.

Noncapitalized ICT spending (expenses that are written off in the same year as made) was $91.4 billion in 2008, not statistically different from 2007. Of that total:

    * Purchases of ICT equipment accounted for $18.3 billion (20.0 percent of the total), a 10.4 percent decrease from 2007.
    * Operating leases and rental payments accounted for $17.2 billion (18.8 percent of the total), not statistically different from 2007.
    * Computer software expenditures accounted for $56.0 billion (61.2 percent of the total), not statistically different from 2007.

Spending on ICT equipment and computer software in 2008 increased in 10 of 19 sectors covered by the survey "no sectors decreased their spending from 2007" and nine sectors showed no statistical difference in spending. Five sectors accounted for 74.2 percent of total ICT spending:

    * The information sector spent $82.7 billion for ICT equipment and computer software, an increase of 22.0 percent from 2007. The information sector accounted for 27.9 percent of total ICT spending in 2008.
    * Spending in the finance and insurance sector for ICT equipment and computer software totaled $50.1 billion in 2008. The sector accounted for 16.9 percent of total ICT spending.
    * The manufacturing sector spent $35.8 billion for ICT equipment and computer software in 2008, accounting for 12.1 percent of total ICT spending.
    * Spending in the professional, scientific and technical services sector for ICT equipment and computer software totaled $27.0 billion in 2008. This sector accounted for 9.1 percent of total ICT spending.
    * Health care and social assistance spent $24.3 billion on ICT equipment and computer software, an increase of 12.9 percent from 2007. Health care and social assistance made up 8.2 percent of total ICT spending in 2008.

The estimates in this report are based on data from the Information and Communication Technology Survey (ICTS). The ICTS estimates are based on a stratified random sample of about 46,000 companies with employees.

Data in the annual ICTS reports are subject to sampling variability as well as nonsampling errors. Sources of nonsampling error include errors of response, nonreporting and coverage.