FDI into the US software and IT services sector fell steadily between January 2013 and September 2015, the most recent full month’s data, according to greenfield investment monitor fDi Markets.
Projects recorded in the first half of 2014 saw a 4.79% drop from a year earlier. This gap grew wider in the second half of 2013 and 2014 with a decline of 11.54%.
In the US, the sector performed better in the second half of the year for both 2013 and 2014. Overall US-destined FDI in the software and IT services sector fell by 19.76% from 572 projects to 459, comparing the third quarter of 2015, the most recent full quarter’s data, with the same period in 2013.
In line with declining project numbers, capital investment and new job figures also dropped, most noticeably between 2014 and 2015. Again, when comparing data in the first half of 2013 and 2014, capital expenditure fell by 18.61%. Overall from the third quarter of 2013 to the third quarter of 2015, capital expenditure fell by 36.9% from $9.05bn to $5.71bn. New jobs fell by 7.57% from 33,253 jobs created in the third quarter of 2013 to 30,737 in the same period of 2015.
California was the most popular state for FDI in the software and IT services sector, recording 20.59% of all projects in the country between January 2013 and September 2015. This was followed by New York, tracking 16.53% of projects.
In terms of source country, the US topped the chart, with states investing in 1062 projects in other states. This was followed by the UK with 166 projects. London, UK, was the top city for US-destined FDI in the software and IT services sector investing in 101 projects. New York City followed closely behind in second place investing in 90 projects.