Feb. 2, 2015: Investment in Nonresidential Structures Expands Moderately in Fourth Quarter 2014
Business Confidence Has Generally Been on the Rise
WASHINGTON — Real gross domestic product (GDP) expanded 2.6 percent (seasonally adjusted annual rate) during the fourth quarter of 2014, following a 5 percent increase in the third quarter, according to the Bureau of Economic Analysis. Nonresidential fixed investment grew by only 1.9 percent after expanding 8.9 percent in the third quarter. Investment in equipment declined 1.9 percent, while investment in nonresidential structures increased 2.6 percent.
This GDP number “will be broadly viewed as disappointing as many economists had expected to see a quarterly number in excess of 3 percent,” said Anirban Basu, Associated Builders and Contractors (ABC) chief economist. “However, it is important to note that the federal spending category subtracted more than half a percentage point, which means the non-federal portion of the economy expanded faster than 3 percent.