What the annual GDP revised data tells us

When BEA released its advanced estimate of GDP last month, it also released its annual revisions. Those revisions go back to 1969 and include more data on Intellectual Property Products (IPP).
First, the revisions. The chart below shows the comparison between the earlier and the most recent data. The level was significantly of in 1Q 2011 and 1Q 2013 and so far off in 2Q 2012 and 3Q 2013 that it missed the trend. Not to be too critical, but this points out that we still have a ways to go in timely data collection.
2015 revisions.png
The more interesting item is the new data on IPP going back to 1969. The chart below shows both the volatility and the somewhat cyclical nature of IPP investment. The same is true for the various components: R&D, software and entertainment, literary, and artistic originals. Interesting that software gets less volatile in the last decade and a half. R&D investment seems to be all over the place. Other than a few spikes, investment in entertainment, literary, and artistic originals has been rather steady.
IPP percent from 1969.png
Software percent from 1969.png
R&D percent from 1969.png
Artistic percent from 1969.png
For more details on the revisions, see The 2015 Annual Revision of the National Income and Product Accounts by Stephanie H. McCulla and Shelly Smith from the August 2015 edition of the Survey of Current Business.

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