WASHINGTON — Real gross domestic product (GDP) expanded by 2.6 percent on a seasonally adjusted annualized basis during the year’s second quarter, according to Associated Builders and Contractors Inc.’s (ABC) analysis of data released by the U.S. Bureau of Economic Analysis. Nonresidential fixed investment, a category of GDP embodying nonresidential construction activity, expanded at a 5.2 percent seasonally adjusted annual rate. This follows a 7.2 percent expansion during the first quarter.
The expansion in nonresidential fixed investment indicates that growth in business outlays continues to support the ongoing economic recovery, now in its ninth year. The expansion of nonresidential fixed investment contributed more than sixth-tenths of a percentage point to GDP growth. This was due in large measure to an uptick in investment in construction equipment. The other two components of nonresidential fixed investment — investment in structures and intellectual property — also expanded but at a slower pace.