Business Fixed Investment (Quarterly Change) vs M2 Money Supply (Year-over-Year Change)
Business Fixed Investment (Quarterly Change) is currently 3.8% (down -0.9%). M2 Money Supply (Year-over-Year Change) is currently 3.9% (up +0.2%).
| Metric | Business Fixed Investment (Quarterly Change) | M2 Money Supply (Year-over-Year Change) |
|---|---|---|
| Current value | 3.8% | 3.9% |
| Previous reading | 4.7% | 3.7% |
| Change | -0.9% | +0.2% |
| Trend | down | up |
| Frequency | Quarterly | Monthly |
| Source | Bureau of Economic Analysis | Federal Reserve |
| Last updated | 2026-03-27 | 2026-03-25 |
| Category | growth | money |
What Business Fixed Investment (Quarterly Change) measures
Business fixed investment measures spending by businesses on structures (factories, offices), equipment, and intellectual property products (software, R&D). It reflects corporate confidence in future demand and is a key component of GDP.
Business investment grew at 3.8% annualized — positive but decelerating from 4.7% last quarter. AI-related capital expenditure (data centers, chips, software) is a bright spot, while traditional equipment investment is more muted. For executives, sustained investment growth signals corporate confidence, but the deceleration suggests some companies are becoming more cautious amid tariff uncertainty and tight financial conditions.
What M2 Money Supply (Year-over-Year Change) measures
M2 is a measure of the money supply that includes cash, checking deposits, savings deposits, money market funds, and small time deposits. Year-over-year changes in M2 are a leading indicator of inflation and economic activity.
M2 growth has recovered to 3.9% year-over-year after an unprecedented contraction in 2023 (the first in modern history). The normalization of money supply growth supports economic activity without being excessively inflationary. For executives, moderate M2 growth (3-5%) is consistent with a healthy economy — it means enough liquidity to support business activity without fueling the kind of excess that drove 2021-2022 inflation.
Frequently asked
Business Fixed Investment (Quarterly Change) is currently 3.8%, down -0.9% from the previous reading. Source: Bureau of Economic Analysis, updated quarterly.
M2 Money Supply (Year-over-Year Change) is currently 3.9%, up +0.2% from the previous reading. Source: Federal Reserve, updated monthly.
Business investment grew at 3.8% annualized — positive but decelerating from 4.7% last quarter. AI-related capital expenditure (data centers, chips, software) is a bright spot, while traditional equip M2 growth has recovered to 3.9% year-over-year after an unprecedented contraction in 2023 (the first in modern history). The normalization of money supply growth supports economic activity without bei