A measure of European investment in capital goods. Fixed capital investments typically increase productivity and GDP growth. When businesses are investing in the big fixed capital items, such as machinery, vehicles, and buildings, it typically reflects optimism for future growth; otherwise, those businesses would other uses for that money. Higher capital investments also tend to increase productivity and contribute to GDP growth. This makes GFCF a measure of business sentiment as well as a leading indicator for economic growth. The headline figure of GFCF is expressed in annualized percentage change for the quarter.

Note: GFCF makes up about 20% of the Euro-zone GDP, with Machinery, equipment, vehicles, land-improvements, and buildings being the biggest contributors. Software and artwork are sometimes considered as the intangible fixed assets.

Relevance : Rarely affects markets
Release Schedule : 9.00 (GMT) ; quarterly, 3 months after the end of a quarter
Source of Report : Eurostat
Web Address : http://ec.europa.eu/comm/eurostat
Address of Release : http://ec.europa.eu/comm/eurostat
Refer Euro-Indicators - National Accounts > Gross Fixed Capital Formation
AKA : Capital formation, Fixed Investment, Fixed Capital, Private Capital Investment