flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Capital investment continues to decline, but at a lower rate

Capital investment continues to decline, but at a lower rate


By By Daryl Delano, Reed Business Information Economist | August 11, 2010
This article first appeared in the 200210 issue of BD+C.

The specific gross domestic product (GDP) component that captures the trend in capital spending by U.S. companies — nonresidential business investment — declined for the seventh consecutive quarter during second quarter of this year. The good news is that the second-quarter decline in capital investment — 1.6% at an annualized rate — was of the smallest magnitude recorded since the fall of 2000. Even more encouraging was the fact that spending for the purchase or upgrade of equipment and software actually increased a bit (2.9% annualized) during the second quarter. This was the first such gain recorded in this GDP category since the middle of 2000.

But spending on nonresidential structures plunged for the fifth time in the past six quarters during the quarter. After contracting at just a slight 1.7% in 2001, business spending on buildings has plunged at an average rate of 19.4% during the past three quarters.

boombox1
boombox2
native1
halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021