Private Investment Expenditure (I)

This is spending by businesses/firms on capital goods. It includes spending on:

plant and equipment (factories and machinery) dwellings and non-dwelling buildings (houses and office blocks) stocks of goods (working capital).

This type of expenditure is a very important prerequisite for future economic growth. It is considered a risk, and, as such, is a very sensitive component. It accounts for approximately 15 per cent of aggregate demand.