Big GDP revision for intangibles

A surprise announcement by the BEA this morning that US GDP actually grew by 4.1% in the 3rd quarter of 2013. The earlier revised estimate published earlier this month showed the GDP growth rate at 3.6% – itself an upward revision of the advanced estimate of 2.8%. The good news is that consumer spending looked healthier than previously reported.
The really big news is that investments in intellectual property products (i.e. research and development; entertainment, literary, and artistic originals; and software) was revised upward to an impressive 5.8%! According to the BEA’s analysis of the previous (second) estimate, most of the growth in this category was due to great investments in software, pri­marily prepackaged software. That analysis seems to hold up for the new data as well. Investment in R&D was up only slightly while investment in entertainment, literary, and artistic originals declined slightly.
IPP percent 3Q13 -3rd.png

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