1Q 2014 GDP – and intangibles investments revised up, again

Well, it is even worse than previous reported. GDP shrank by 2.9% in the first quarter of 2014, according to data released by the BEA this morning. The second estimate had shown a drop of 1.0% while the first estimate had the economy growing by a scant 0.1%. GDP had increased by 2.6% in the last quarter of 2013 and 1.9% for the entire year. Economists had forecast a drop of around 1.8%. But economists are forecasting the GDP will rise by 3.5% in the second quarter.
Once again investments in Intellectual Property Products (IPP – i.e. research and development; entertainment, literary, and artistic originals; and software) were revised upwards to an increase of 6.3% compared with a 5.1% growth rate in the second estimate and 1.5% in the first estimate. All other categories of gross private domestic investment declined – with equipment down 2.8%, non-residential building down 7.7% and investment down by 11.7% in total.
IPP percent 1Q14 - 3rd.png

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