Asia-Pacific business services FDI into US continues to fall

Greenfield investment monitor fDi Markets has recorded a year-on-year decline of FDI in the business services sector from Asia-Pacific into the US between 2013 and 2015. During this period, business services was the third most prominent sector in Asia-Pacific FDI into the US, accounting for 8.17% of total projects. During 2013, 39 such investment projects into the US were recorded, a figure that decreased by 10.26% in 2014.

The trend continued in 2015 when 29 business services projects from Asia-Pacific into the US were recorded (a decrease of 17.14% on 2014 figures). India was the largest source country in the Asia-Pacific region for FDI projects into the US with a business services sector during these three years (accounting for 43.69%). In this instance, Indian companies invested in 21 business services projects into the US during 2013, but only 11 in 2015.

Capital investment from Asia-Pacific into the US in the business services sector has also declined during this period. In this case, $276.6m was invested during 2013. This subsequently decreased year on year, with 2015 recording a value that was 34.6% lower than that recorded in 2013. The total capital investment across all sectors from Asia-Pacific into the US decreased by 29.87%. Of this decline, the business services sector was responsible for 1.23%.

Jobs created by Asia-Pacific investment into the US in the business services sector follow the same trend across the 2013 to 2015 period. Here, there was a decrease of 65.11%, falling from 6549 jobs created in 2013 to 2285 in 2015.

Looking at the first half of 2016, it appears this downward trend is set to continue. In the January to June 2015 period, 16 business services projects from Asia-Pacific into the US were recorded. This has decreased to 12 for the same period in 2016. Similarly, capital investment and jobs created have experienced decreases of 39.81% and 53.26% respectively when comparing the two time periods.