Foreign Investment in U.S. Jumps 16.7%

Foreign direct investment in the United States to acquire existing companies or set up new companies jumped by 16.7% last year to an all-time high of $320.9 billion, the Commerce Department said.

The activity represented nearly a fivefold increase from the $69.7 billion in foreign investment that occurred in 1997. Since then, foreign investment has set record highs for three consecutive years, climbing to $215.3 billion in 1998 and $275 billion in 1999.

The biggest acquisition activity occurred in manufacturing, followed by the information sector, which includes publishing, movies and broadcast firms.

More than three-fourths of the foreign money came from Europe--a total of $244.7 billion, up 24.6% from 1999.