Business Fixed Investment (Quarterly Change) vs PCE Price Index (Year-over-Year)
Business Fixed Investment (Quarterly Change) is currently 3.8% (down -0.9%). PCE Price Index (Year-over-Year) is currently 2.5% (down -0.1%).
| Metric | Business Fixed Investment (Quarterly Change) | PCE Price Index (Year-over-Year) |
|---|---|---|
| Current value | 3.8% | 2.5% |
| Previous reading | 4.7% | 2.6% |
| Change | -0.9% | -0.1% |
| Trend | down | down |
| Frequency | Quarterly | Monthly |
| Source | Bureau of Economic Analysis | Bureau of Economic Analysis |
| Last updated | 2026-03-27 | 2026-03-28 |
| Category | growth | inflation |
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 PCE Price Index (Year-over-Year) measures
The Personal Consumption Expenditures (PCE) price index is the Federal Reserve's preferred inflation measure. It tracks prices of goods and services consumed by households and adjusts its basket dynamically as consumers shift spending patterns.
PCE at 2.5% is closer to the Fed's 2% target than CPI, giving the Fed more room to consider rate cuts. The PCE tends to run 0.3-0.5 points below CPI because it accounts for consumer substitution (switching to cheaper alternatives when prices rise). For executives, the PCE trajectory suggests inflation is on a downward path, which should eventually lead to lower borrowing costs.
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.
PCE Price Index (Year-over-Year) is currently 2.5%, down -0.1% from the previous reading. Source: Bureau of Economic Analysis, 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 PCE at 2.5% is closer to the Fed's 2% target than CPI, giving the Fed more room to consider rate cuts. The PCE tends to run 0.3-0.5 points below CPI because it accounts for consumer substitution (swit