Inventory investment is a component of gross domestic product (GDP). What is produced in a certain country is naturally also sold eventually, but some of the goods produced in a given year may be sold in a later year rather than in the year they were produced. Conversely, some of the goods sold in a given year might have been produced in an earlier year. The difference between goods produced (production) and goods sold (sales) in a given year is called inventory investment. The term can be applied to the economy as a whole or to an individual firm.
Read more about Inventory Investment: Definition of Inventory Investment, Mathematical Relationship of Inventory Investment To Inventories, Intended and Unintended Inventory Investment, Relationship To Macroeconomic Equilibrium, Inventory Investment Over The Business Cycle
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“There is something fascinating about science. One gets such wholesale returns of conjecture out of such a trifling investment of fact.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)