Here we go again. BEA’s advanced estimate for the second quarter of 2023 is that GDP grew by 2.4%—well above what economists had predicted. The strong growth was led by a number of factors: consumer spending, business investment, private inventory, Federal, state and local government spending. Overall investment in knowledge-related business investment grew only slightly. However, that hides some interesting dynamics. Investment in software increased while investment in equipment and R&D spending were essentially flat.
[Note: I define knowledge-related investment as the combination of investment in Information Processing Equipment, R&D, and Software. The first of these three categories is reported in the GDP data as a subcategory of Non-residential Fixed Investment: Equipment. The latter two are reported as subcategories of Non-residential Fixed Investment: Intellectual Property Products.]
The Intangible Economy 