Nonresidential Fixed Investment GDP Falls 4.4 Percent in Third Quarter

← Proper Operation of Walk-Behind Trenchers (Ditch Witch Video) Remodeling Market Index Climbs Five Points, Returns to 2005 Levels →

October 29th, 2012

The nation’s nonresidential fixed investment in structures dropped 4.4 percent in the third quarter of this year following a 0.6 percent increase in the second quarter, according to the Oct. 26 Gross Domestic Product (GDP) report by the U.S. Commerce Department. Nonresidential fixed investment in equipment and software was unchanged for the third quarter following a 4.8 percent increase in the second quarter. Overall, nonresidential fixed investment fell 1.3 percent in the third quarter after a revised 3.6 percent increase in the previous quarter.

Residential fixed investment increased for the sixth straight quarter, jumping 14.4 percent in the third quarter. Exports decreased 1.6 percent as exports of goods dipped 3.5 percent and exports of services increased 3.1 percent. Imports slipped 0.2 percent in the third quarter as imports of goods decreased 1.3 percent and imports of services increased 5.5 percent.

Personal consumption expenditures increased 2 percent in the third quarter as spending on goods increased 4.4 percent and spending on services inched up 0.8 percent. Real final sales of domestic product -- GDP less change in private inventories -- increased 2.1 percent for the quarter following a revised 1.7 percent increase in the second quarter.

The Machine Works blog is always looking into the future.


Federal government spending jumped 9.6 percent in the third quarter following a 0.2 percent decrease in the second quarter. National defense spending increased 9.6 percent while nondefense spending increased 3 percent. State and local government spending slipped 0.1 percent in the third quarter following a 1 percent decrease in the previous quarter.

Gross domestic purchases -- purchases by U.S. residents of goods and services wherever produced -- increased 2.1 percent in third quarter following an increase of 1.7 percent in the second quarter. Overall, real GDP increased 2 percent in the third quarter following a revised 1.3 percent increase in the second quarter.


“Nearly every major aspect of the domestic economy expanded during the third quarter of the year,” said Associated Builders and Contractors Chief Economist Anirban Basu. “Unfortunately, that sector was nonresidential fixed investments, which overlaps substantially with nonresidential construction activity.

“Many economists attribute ongoing sluggish macroeconomic performance to a heightened level of uncertainty emerging from both foreign and domestic sources,” said Basu. “However, certain segments of the economy are doing just fine, uncertainty notwithstanding.

“Weak job growth continues to suppress the demand for new space while new regulatory framework appears to be limiting the pace of commercial real estate lending,” said Basu. “There is little reason to believe these dynamics will change significantly during the current quarter.

“There is a consensus among economists that once the election is behind us—and if the nation resolves its fiscal cliff issues—economic activity will pick up due to improved confidence,” Basu said. “This is possible, but those in nonresidential construction know construction spending often lags broader economic recovery by twelve to eighteen months. The implication is that even under reasonably optimistic scenarios, nonresidential construction spending may not improve markedly for several quarters.”

To view the previous Gross Domestic Product report, click here.

 

1 Comments

There are even backpacks available with GPS technologies installed. Some of these will activate if the kid is too far away from the parent. And there is even one particular that is implanted inside a <a href="http://www.dxwatches.org/rolex">replica rolex</a>.Of course the main problems with these are the youngster is going to lose them, or if the youngster is abducted they can easily be disposed of. I can envision the day when it will be possible to have a GPS transmitter implanted in a youngster via an injection or some other simple <a href="http://www.dxwatches.org/cartier">replica cartier</a>.There are other concerns also. Are only children with parents who can afford this technologies are going to benefit. Is this going to increase the number of lower class children, whose parents can’t afford this new technologies, becoming abducted? Will someone, for example a child <a href="http://www.dxwatches.org/breitling">replica breitling</a> or kidnapper, discover a way to use a child’s transmitter signal to find the child? Also how are our children to adjust to the fact that they are constantly being monitored?How secure are our children going to feel knowing that the world is so dangerous that their <a href="http://www.dxwatches.org/patek-philippe">replica patek philippe</a> ought to know where they are at all times? Are we stripping a part of their childhood away from them? Who doesn’t remember, as a kid, going somewhere you knew your parents didn’t want you to go, but as children we are adventurers, and if we got into trouble or got ‘caught’ getting where we shouldn’t be, we a lot more than likely not only got punished but also learned a lesson.

October 30th, 2012 // By replica watches

Leave a Comment

  _  _      ___    ____    _   _   _____ 
 | || |    ( _ )  |___ \  / | / | |  ___|
 | || |_   / _ \    __) | | | | | | |_   
 |__   _| | (_) |  / __/  | | | | |  _|  
    |_|    \___/  |_____| |_| |_| |_|
Please type the letters and numbers you see above in the field below: