Fixed investment
Consists of purchases of residential and nonresidential structures and of equipment and software by private businesses, by nonprofit institutions, and by governments in the United States. (Owner-occupied housing is treated like a business in the NIPAs.) Related terms: nonresidential fixed investment, residential fixed investment. | ||||
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Fixed investment Definition from Encyclopedia Dictionaries & Glossaries
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Fixed investment
Fixed investment in economics refers to investment in fixed capital, i.e. tangible capital goods (real means of production or residential buildings), or to the replacement of depreciated capital goods. Thus, fixed investment is investment in physical assets such as machinery, land, buildings, installations, vehicles, or technology. Normally, a company balance sheet will state both the amount of expenditure on fixed assets during the quarter or year, and the total value of the stock of fixed assets owned.
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