A conditions monitor for fixed capital formation

Economic indicators such as fixed capital formation do not develop in isolation. The basic idea underlying the conditions monitors is that developments in macro-economic indicators are driven by a relatively low number of fundamental factors. By finding indicators representing developments in these underlying factors, the observed values of the target economic variable can be placed in context and analysed more thoroughly. The underlying factors identified for the private fixed capital formation were availability and cost of capital, capacity utilization and business conditions. The usefulness of the indicator set is greatly enhanced by presenting it in an appropriate graphic visualisation.

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