Fci,Fixed Capital Index

The Fixed Capital Index (FCI) is a measure of industry capital spending in the United States that is used to gauge overall economic activity. Firms with capital expenditures of $250,000 or more are included in the FCI. It is a supplementary index to the Producer Price Index (PPI) and the Consumer Price Index (CPI).

Components of the FCI:

• Durable goods: Machines, vehicles, equipment, electronic equipment, and tools.
• Non-durable goods: Appliances, motor vehicles, and consumer goods.
• Structures: Buildings, bridges, tunnels, and other infrastructure.
• Other: Intangible assets, such as intellectual property rights.

Importance of the FCI:

• Track economic growth: The FCI is a closely watched indicator of economic growth because it reflects changes in investment spending.
• ** gauge inflation:** The FCI can be used to gauge inflation by tracking changes in prices for durable and non-durable goods.
• As gauge interest rates: The FCI can influence interest rate movements, as changes in the index can affect investor demand for bonds.
• Compare industry performance: The FCI can be used to compare industry performance by tracking changes in their investment spending patterns.

Source:

• U.S. Bureau of Economic Analysis