Updated 4Q GDP

This morning BEA came out with its second estimate of 4Q GDP. As expected, the growth rate of the economy was revised downward slightly to 2.2% from the earlier advanced estimate of 2.6%. Economist had expected a growth rate of only 2%.
However, business investment was revised upwards, especially in R&D investment. The growth in business investment in intellectual property products (IPP) was revised upward to 10.9% from the earlier estimate of 7.1%. Software investment was revised upward to 10.1% from the 9.4% growth rate in advanced estimate and compared with a 8.9% growth rate in 3Q. Contrary to the previous estimate, R&D investment grew by 14% compared to a 10.6% increase in 3Q (the advanced estimate had it slipping somewhat to 6.1% in 4Q). Growth in investment in entertainment, literary, and artistic originals remained steady at 2.6% in 4Q.
GDP 4Q14 - 2nd.png
IPP percent 4Q14 -2nd.png
IPP parts 4Q14 - 2nd.png
GDP-IPP 4Q14 - 2nd.png

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