Manufacturing Sector: Capital Share
MPU9900671 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.29
Year-over-Year Change
20.92%
Date Range
1/1/1987 - 1/1/2023
Summary
The Manufacturing Sector: Capital Share measures the share of total manufacturing output that can be attributed to capital inputs. This metric provides insights into the capital-labor ratio and productivity within the manufacturing industry.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Capital Share represents the portion of total manufacturing value-added that is generated by capital investments rather than labor. Economists use this indicator to analyze shifts in the relative contributions of capital and labor to manufacturing output over time.
Methodology
The data is calculated by the U.S. Bureau of Labor Statistics using production data and capital stock estimates.
Historical Context
This metric is closely watched by policymakers and analysts for its implications on manufacturing competitiveness and the capital intensity of production.
Key Facts
- The capital share has increased from 36% in 1987 to 44% in 2021.
- Higher capital share indicates greater mechanization and automation in manufacturing.
- The capital share tends to rise during periods of rapid technological change.
FAQs
Q: What does this economic trend measure?
A: The Manufacturing Sector: Capital Share measures the proportion of total manufacturing output that is attributable to capital inputs rather than labor.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insights into the capital intensity and productivity dynamics within the manufacturing industry, which is crucial for understanding competitiveness and technological change.
Q: How is this data collected or calculated?
A: The data is calculated by the U.S. Bureau of Labor Statistics using production data and capital stock estimates.
Q: How is this trend used in economic policy?
A: Policymakers and analysts closely monitor the capital share to gauge manufacturing competitiveness and the impact of technological change on the capital-labor ratio.
Q: Are there update delays or limitations?
A: The data is published quarterly with a typical 2-3 month lag. There may be revisions to historical data as new information becomes available.
Related Trends
Labor Compensation for Manufacturing: Plastics Packaging Materials and Unlaminated Film and Sheet Manufacturing (NAICS 32611) in the United States
IPUEN32611L020000000
Labor Productivity for Manufacturing: Nonmetallic Mineral Product Manufacturing (NAICS 327) in the United States
IPUEN327L000000000
Employment for Manufacturing: Other Electrical Equipment and Component Manufacturing (NAICS 3359) in the United States
IPUEN3359W200000000
Output per Worker for Manufacturing: Steel Product Manufacturing from Purchased Steel (NAICS 3312) in the United States
IPUEN3312W000000000
Real Sectoral Output for Manufacturing: Textile and Fabric Finishing and Fabric Coating Mills (NAICS 3133) in the United States
IPUEN3133T011000000
Hours Worked for Manufacturing: Machine Shops (NAICS 332710) in the United States
IPUEN332710L201000000
Citation
U.S. Federal Reserve, Manufacturing Sector: Capital Share (MPU9900671), retrieved from FRED.