Thursday, April 28, 2011

Business Investment and GDP Growth

link here to article

Business investment includes business spending on assets and new housing construction. Investments in technology and software has turned upwards but investment in new housing construction is at a 50 year low. Although new housing investment is only 2.2% of GDP it is very important for two reasons. It drags spending on things to fill a house with appliances, furnishings etc. and growth in new housing construction has been the key component of GDP growth in recovery from recession.

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