Machinery orders decreased by 2% month-on-month in February, unexpected decrease
If you write the contents roughly
It is attracting attention as a leading indicator of capital investment.
[Tokyo XNUMXth Reuters] -According to the February Machinery Order Statistics released by the Cabinet Office on the XNUMXth, leading indicators of capital investment ... → Continue reading
Wikipedia related words
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The equipment to be invested isTangible fixed assets(Of the assets used over a long period of time, machines for producing semiconductor manufacturing equipment, buildings such as offices and shops, vehicles for transportation, tool equipment, etc.),Intangible fixed assets(Of the assets used over the long term,software,Telephone subscription right,Patent-商標Rights, etc.)
When discussing business fixed investment, tangible fixed assets were often mentioned, but since the IT bubble, intangible fixed assets (mainly IT investment) have also come to the forefront.
Impact on macro economy
The amount of capital investment isMultiplier effectIncrease consumption, thus increasing economic demand. The increase in demand justifies the increase in production due to capital investment and brings about a golden state in which supply and demand grow together. Capital investment has a multiplier effect for the following reasons.
Investment for business companies that investCash flowIs only in the red, accountingDepreciationDo not go into the red. On the other hand, it will be sales for those who sell equipment and factories, which will be the salaries of employees and the profit of the company. In this way, the financial benefits of society as a whole are increased by investment. As a result, the economy as a whole is energized and consumption is increased.
On the other hand, if capital investment becomes sluggish, even if the cash flow is in the black, accounting profits may not be generated and the economy as a whole will be stagnant.
How it is used
Business fixed investment is used as an index for judging economic trends, and is used to check investment motivation based on business fixed investment plans and corporate profits.statisticsWhen looking at capital investment, there are differences such as the scope of the survey depending on the statistics and the handling of land purchase costs.
- Private enterprise capital stock (Cabinet Office）
- Machine Order Statistics (Cabinet Office)
- Capital investment survey (Ministry of Economy, Trade and Industry）
- Corporate short-term economic observation survey(Bank of Japan）
- Small and medium manufacturing industry capital investment trend survey (Japan Finance Corporation）