Fixed Capital Formation

Fixed Capital Formation

The process by which a company acquires its fixed assets. Fixed assets are productive assets a company holds for longer than one year. Thus, fixed capital formation occurs, for example, when a company builds a factory or installs a pipeline. Fixed capital formation is often expensive, but is necessary for growth in manufacturing and similar industries.
References in periodicals archive ?
For the same period, gross fixed capital formation increased by 0.
5 percent, due primarily to downward revisions to gross fixed capital formation (capital goods investment) to -4.
This marks the fastest expansion since the final months of the pre-crisis boom in Q308, and suggests that ongoing stimulus measures, coupled with a stronger-than-expected rebound in gross fixed capital formation have pushed the Argentine economy into a more robust recovery cycle.
In the first quarter of 2012 the Gross Fixed Capital Formation is BGN 3 346 M and has a share of 21.
In the fourth quarter of 2011, the gross fixed capital formation is BGN 5 892 M and has a share of 28.
Further, the sector accounts for almost one-third of global gross fixed capital formation (GFCF).
The principal reasons for the downward revision for 2002-2003 are that the anticipated growth rates for household consumption expenditure and fixed capital formation are now substantially lower than in the August forecast.
During the same period, gross fixed capital formation fell 12.
5 percent during Q1, gross fixed capital formation plunged 4.
A fairly substantial downward adjustment has been made in the forecast for gross fixed capital formation both this year and next year, one reason being that weaker general-government finances will mean deferral of investments in infrastructure.
More than just recovery from the previous dip, the rise was driven by a more fundamental recovery in private consumption and gross fixed capital formation.
As such, we are expecting to see growth in gross fixed capital formation to slow and stabilise at a lower, albeit still robust, level.