Relative Price of Investment Goods
This dataset tracks relative price of investment goods over time.
Latest Value
0.90
Year-over-Year Change
-4.07%
Date Range
1/1/1947 - 10/1/2023
Summary
The Relative Price of Investment Goods measures the price of investment goods relative to the overall price level in the U.S. economy. This metric is important for economists and policymakers to track capital investment trends and assess the impact of tax and fiscal policies.
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 Investment Goods is an index that compares the prices of capital equipment, software, and structures to the overall consumer price index. It provides insight into the affordability of investment for businesses and households, which is a key driver of economic growth.
Methodology
The data is calculated by the U.S. Bureau of Economic Analysis as part of the National Income and Product Accounts.
Historical Context
Policymakers and analysts monitor this trend to evaluate the impact of tax and regulatory policies on business investment.
Key Facts
- The relative price of investment goods has declined by over 50% since the 1980s.
- Investment accounts for around 18% of U.S. GDP.
- Lower relative investment prices encourage business capital formation.
FAQs
Q: What does this economic trend measure?
A: The Relative Price of Investment Goods measures the price of capital equipment, software, and structures relative to the overall consumer price index.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insight into the affordability of investment for businesses and households, which is a key driver of economic growth and productivity.
Q: How is this data collected or calculated?
A: The data is calculated by the U.S. Bureau of Economic Analysis as part of the National Income and Product Accounts.
Q: How is this trend used in economic policy?
A: Policymakers and analysts monitor this trend to evaluate the impact of tax and regulatory policies on business investment and capital formation.
Q: Are there update delays or limitations?
A: The Relative Price of Investment Goods data is published quarterly with the National Income and Product Accounts, with a typical release lag of about one month.
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Citation
U.S. Federal Reserve, Relative Price of Investment Goods (PIRIC), retrieved from FRED.