• Q3 GDP: Investment

    21 days ago - By Calculated Risk

    The first graph below shows the contribution to GDP from residential investment, equipment and software, and nonresidential structures. This is important to follow because residential investment tends to lead the economy, equipment and software is generally coincident, and nonresidential structure investment trails the economy.
    In the graph, red is residential, green is equipment and software, and blue is investment in non-residential structures. So the usual pattern - both into and out of recessions is - red, green, blue.
    The dashed gray line is the contribution from the change in private...
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