Fact-based, data-driven research and analysis to advance democratic debate on vital issues shaping people’s lives.
Center for Economic and Policy Research
1611 Connecticut Ave. NW
Suite 400
Washington, DC 20009
Tel: 202-293-5380
Fax: 202-588-1356
https://cepr.net
April 28, 2011
Investment in equipment and software maintained strong growth in the first quarter, rising at an 11.6 percent annual rate. Equipment and software investment were equal to 7.4 percent of GDP in the quarter, just 0.5 percentage points below the pre-recession level. This is remarkably strong given the amount of excess capacity in most sectors of the economy. It is likely to remain healthy throughout the year as the investment tax credit pulls investment forward; however, it may not sustain its double-digit growth rate.
For more, check out our latest GDP Byte.