Price Level of Capital Formation for United States
PLICPPUSA670NRUG • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.99
Year-over-Year Change
29.12%
Date Range
1/1/1950 - 1/1/2019
Summary
The Price Level of Capital Formation for the United States measures the prices of capital goods and equipment used for investment purposes. This metric is crucial for economists and policymakers to understand business investment trends and their impact on the broader economy.
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 Price Level of Capital Formation is an index that tracks the prices of a wide range of capital goods, such as machinery, equipment, and structures purchased by businesses for investment. It provides insight into the cost of capital and is an important indicator of the investment climate and overall economic conditions.
Methodology
The data is collected by the U.S. Bureau of Economic Analysis through surveys of businesses and producers.
Historical Context
This metric is closely monitored by the Federal Reserve and other policymakers to gauge inflationary pressures and make informed decisions about monetary and fiscal policies.
Key Facts
- The index is based on 2012 as the base year.
- Capital formation accounts for a significant portion of GDP growth.
- The trend in capital goods prices is a leading indicator of overall inflation.
FAQs
Q: What does this economic trend measure?
A: The Price Level of Capital Formation measures the prices of capital goods and equipment used for investment purposes by businesses in the United States.
Q: Why is this trend relevant for users or analysts?
A: This metric is crucial for understanding business investment trends and their impact on the broader economy, as it provides insight into the cost of capital and the overall investment climate.
Q: How is this data collected or calculated?
A: The data is collected by the U.S. Bureau of Economic Analysis through surveys of businesses and producers.
Q: How is this trend used in economic policy?
A: The Price Level of Capital Formation is closely monitored by the Federal Reserve and other policymakers to gauge inflationary pressures and make informed decisions about monetary and fiscal policies.
Q: Are there update delays or limitations?
A: The data is released on a regular schedule by the U.S. Bureau of Economic Analysis, with minimal update delays.
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Citation
U.S. Federal Reserve, Price Level of Capital Formation for United States (PLICPPUSA670NRUG), retrieved from FRED.