3Q GDP shows continued growth in intangible investments

This morning’s advanced estimate of U.S. 3rd quarter GDP from the BEA shows a healthy growth rate of 3.5%. Economists had forecast an overall growth rate of 3%. Personal consumption, exports, nonresidential fixed investment, and spending, and state were all major contributors to the growth. Part of that growth in nonresidential fixed investment was a 4.2% growth in business investments in intellectual property products (IPP), i.e. research and development; entertainment, literary, and artistic originals; and software. IPP investments had increased by 5.5% in the 2nd quarter.
Note that the measurement of intellectual property products by the BEA does not encompass all types of intangible assets. While the inclusion of R&D and entertainment, literary, & artistic originals in the GDP as an investment is a major step forward, more work on measuring intangibles still needs to be done.
IPP percent 3Q14 - 1st.png

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