The value, at current replacement cost, of the reproducible fixed assets such as buildings, plants and machinery used during a period of time as a result of normal wear and tear, foreseen obsolescence and the normal rate of accidental damage. The use of roads, dams and other forms of public construction other than structures of the producers of government services are not included as part of capital consumption. It refers to the expenditure incurred in the acquisition of new fixed assets and replacement of or alterations to existing fixed assets, for the purpose of increasing future production. Expenditure on repairs and maintenance of the fixed assets is not part of capital expenditure. Durable goods that are used as factor inputs for further production of goods and services.
Examples are industrial machinery, transportation equipment and factories.
See Consumer goods. Payments of wages and salaries, pensions and allowances by resident producers to their employees. Such payments may be in cash or in kind. Constant price estimates. Estimates which exclude the effects of price changes from period to period.