Investment was extraordinarily weak in the last quarter, shrinking at a 1.3 percent annual rate. Structure investment fell at a 4.4 percent rate, while investment in equipment and software was flat. The drop in structure investment was largely driven by a sharp falloff in construction of power facilities. It is likely that both categories of investment are being held back by uncertainty at the moment. With the outcome of the election in doubt, there are many tax and regulatory decisions that could affect the profitability of various investments.
For more, check out the latest GDP Byte.