GDP Gains Ground in Q2

Aug. 1, 2010
Fixed investment in non-residential structures posts slight increase in the second quarter

Despite the nation’s sluggish economy, non-residential fixed investment jumped 17% in the second quarter, following a revised 7.8% increase in the first quarter, according to the U.S. Commerce Department’s latest gross domestic product (GDP) report, which came out in late July. Fixed investment in non-residential structures increased 5.2% in the second quarter, following seven straight quarters of losses, while fixed investment in non-residential equipment and software spiked up 21.9%, following a 20.4% increase in the first quarter of the year.

Gross domestic purchases continue to increase, up 5.1% in the second quarter. Overall, real GDP, meaning the output of goods and services produced by labor and property located in the United States, grew 2.4% in the second quarter, following a revised 3.7% increase in the first quarter and 5% increase in the fourth quarter of last year.

“On its face, today’s GDP report appears somewhat disappointing,” says Associated Builders and Contractors Chief Economist Anirban Basu. “Many economists had been predicting 3% growth or more for the second quarter. The immediate response of financial markets was somewhat negative to the news since it confirmed that the economy is hobbling into the third quarter.”

However, from a construction activity standpoint, Basu maintains this is good news — a reflection of both economic recovery and the impact of various stimulus programs. “The key issue is the extent to which the enhanced levels of construction data in the second quarter GDP report were merely a reflection of stimulus as opposed to sustainable recovery,” he says.

Voice your opinion!

To join the conversation, and become an exclusive member of EC&M, create an account today!

Sponsored Recommendations

Electrical Conduit Comparison Chart

CHAMPION FIBERGLASS electrical conduit is a lightweight, durable option that provides lasting savings when compared to other materials. Compare electrical conduit types including...

Fiberglass Electrical Conduit Chemical Resistance Chart

This information is provided solely as a guide since it is impossible to anticipate all individual site conditions. For specific applications which are not covered in this guide...

Considerations for Direct Burial Conduit

Installation type plays a key role in the type of conduit selected for electrical systems in industrial construction projects. Above ground, below ground, direct buried, encased...

How to Calculate Labor Costs

Most important to accurately estimating labor costs is knowing the approximate hours required for project completion. Learn how to calculate electrical labor cost.