Definition: Machinery and equipment
Transport equipment and other machinery and equipment, as defined below other than that acquired by households for final consumption. Tools that are relatively inexpensive and purchased at a relatively steady rate, such as hand tools, may be excluded. Also excluded is machinery and equipment integral to buildings that is included in dwellings and nonresidential buildings.
Uncompleted machinery and equipment is excluded, unless produced for own use, because the ultimate user is deemed to take ownership only on delivery of the asset. Machinery and equipment acquired for military purposes is included to the extent that it resembles goods acquired by civilian units for purposes of production and that the military uses in the same way.
Machinery and equipment acquired by households for final consumption is not treated as an asset. It is instead included in the memorandum item "consumer durables" in the balance sheet for households. Houseboats, barges, mobile homes and caravans used by households as principal residences are included in dwellings.
Eurostat, "European System of Accounts - ESA 1995", Office for Official Publications of the European Communities, Luxembourg, 1996