Relative Price of Equipment
This dataset tracks relative price of equipment over time.
Latest Value
0.73
Year-over-Year Change
-12.05%
Date Range
1/1/1947 - 10/1/2023
Summary
The Relative Price of Equipment tracks the price of capital equipment relative to the overall price level in the U.S. economy. It is an important indicator for economists and policymakers to monitor investment trends and productivity.
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 Relative Price of Equipment measures the price index of capital equipment divided by the overall GDP price index. It provides insight into the cost of investment goods compared to consumer goods and services, which informs analysis of business investment and economic growth.
Methodology
The data is calculated by the U.S. Bureau of Economic Analysis using national accounts information.
Historical Context
This metric is widely used by the Federal Reserve and other economic analysts to assess investment conditions and the state of the business cycle.
Key Facts
- The Relative Price of Equipment has declined by over 60% since 1980.
- Lower equipment prices spur business investment and productivity growth.
- The relative price is an important input for macroeconomic models and forecasting.
FAQs
Q: What does this economic trend measure?
A: The Relative Price of Equipment tracks the price of capital equipment relative to the overall price level in the U.S. economy.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insight into investment conditions and the state of the business cycle, which is critical information for economists, policymakers, and market analysts.
Q: How is this data collected or calculated?
A: The data is calculated by the U.S. Bureau of Economic Analysis using national accounts information.
Q: How is this trend used in economic policy?
A: The Relative Price of Equipment is widely used by the Federal Reserve and other economic analysts to assess investment trends and productivity, which informs monetary and fiscal policy decisions.
Q: Are there update delays or limitations?
A: The data is published on a quarterly basis with a typical lag of 1-2 months.
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Citation
U.S. Federal Reserve, Relative Price of Equipment (PERIC), retrieved from FRED.