{"id":1004112532,"date":"2015-02-02T10:01:46","date_gmt":"2015-02-02T18:01:46","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004112532"},"modified":"2022-12-06T06:47:49","modified_gmt":"2022-12-06T14:47:49","slug":"economy-watch-real-m-f-fixed-investment-grows","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/","title":{"rendered":"Economy Watch: Real M-F Fixed Investment Grows"},"content":{"rendered":"

By Dees Stribling, Contributing Editor<\/em><\/p>\n

On Friday the Bureau of Economic Analysis reported, in its preliminary report on U.S. economic growth in the fourth quarter of 2014, that real GDP was up an annualized 2.6 percent. That seems sluggish compared to the robust rate of 5 percent in the third quarter, and the number did inspire some hand-wringing about the sustainability of the recovery. Was the third quarter a fluke? Or is the rest of the world, which isn\u2019t growing so fast these days, starting to drag the United States down? Or is it the impact of the stronger dollar? All of these ideas have been floated.<\/p>\n

But maybe the GDP report is stronger than it seems, and in ways that will benefit various parts of the commercial real estate industry. For one thing, growth tends to be revised upward in the second and third reports by the BEA, which will be out in the coming weels. Besides that, some of the components of the overall metric were actually healthy. All of the following categories showed improvement: personal consumption expenditures (PCE), private inventory investment, exports, nonresidential fixed investment, state and local government spending, and residential fixed investment. PCE, which is essentially consumer spending, turned in annually growth of 4.3 percent, which ought to gladden the hearts of retailers. Also, real residential fixed investment — single-family structures, multi-family structures, home improvement, broker’s commissions, and a few other categories \u2013 grew at 4.1 percent. Not too shabby.<\/p>\n

The main drags on GDP in the fourth quarter were lower federal government spending, which knocked 0.54 percentage points from the total, but especially a higher level of imports. Imports count as a subtraction from GDP, and in the case of the fourth quarter they took 1.02 percentage points off the total.<\/p>\n

In some ways, the quarter-by-quarter gyrations in GDP aren\u2019t as telling as longer-term trends.\u00a0 Also important for the commercial property business, the BEA noted that investment in non-residential structures has been going up in recent quarters, as a percentage of GDP. Because of the recession, such investment dropped from just under 4 percent of GDP at the beginning of 2009 to just over 2 percent by 2011. As of the end of 2014, it\u2019s back to about 3 percent. That\u2019s roughly back to the level of the 1990s, but still low compared with earlier decades. From the end of World War II to the 1970s, investment in non-residential structures fluctuated between 3 percent and 4 percent of GDP, with an anomalous spike in the 1980s to more than 5 percent for a short time (they didn\u2019t call it the go-go \u201980s in development for nothing).<\/p>\n","protected":false},"excerpt":{"rendered":"

While GDP growth in general might seem sluggish, if you look closer, you’ll see that real residential fixed investment, such as multi-family structures, grew at 4.1 percent.<\/p>\n","protected":false},"author":1023,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21742],"tags":[],"class_list":["post-1004112532","post","type-post","status-publish","format-standard","hentry","category-latest"],"acf":[],"yoast_head":"\nEconomy Watch: Real M-F Fixed Investment Grows - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Economy Watch: Real M-F Fixed Investment Grows\" \/>\n<meta property=\"og:description\" content=\"While GDP growth in general might seem sluggish, if you look closer, you'll see that real residential fixed investment, such as multi-family structures, grew at 4.1 percent.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2015-02-02T18:01:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-06T14:47:49+00:00\" \/>\n<meta name=\"author\" content=\"Dees Stribling\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/economy-watch-real-m-f-fixed-investment-grows\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/economy-watch-real-m-f-fixed-investment-grows\\\/\"},\"author\":{\"name\":\"Dees Stribling\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/dc1e9fa4ee0430d86f8e60cd697c953c\"},\"headline\":\"Economy Watch: Real M-F Fixed Investment Grows\",\"datePublished\":\"2015-02-02T18:01:46+00:00\",\"dateModified\":\"2022-12-06T14:47:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/economy-watch-real-m-f-fixed-investment-grows\\\/\"},\"wordCount\":439,\"commentCount\":0,\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/economy-watch-real-m-f-fixed-investment-grows\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/economy-watch-real-m-f-fixed-investment-grows\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/economy-watch-real-m-f-fixed-investment-grows\\\/\",\"name\":\"Economy Watch: Real M-F Fixed Investment Grows - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\"},\"datePublished\":\"2015-02-02T18:01:46+00:00\",\"dateModified\":\"2022-12-06T14:47:49+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/dc1e9fa4ee0430d86f8e60cd697c953c\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/economy-watch-real-m-f-fixed-investment-grows\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/economy-watch-real-m-f-fixed-investment-grows\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/economy-watch-real-m-f-fixed-investment-grows\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Economy Watch: Real M-F Fixed Investment Grows\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/dc1e9fa4ee0430d86f8e60cd697c953c\",\"name\":\"Dees Stribling\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/42add8af9e9229ed27332ad13f5b8c6f6ae89de868a41cf81baaac4ad46e589a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/42add8af9e9229ed27332ad13f5b8c6f6ae89de868a41cf81baaac4ad46e589a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/42add8af9e9229ed27332ad13f5b8c6f6ae89de868a41cf81baaac4ad46e589a?s=96&d=mm&r=g\",\"caption\":\"Dees Stribling\"},\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/author\\\/dcstribling\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Economy Watch: Real M-F Fixed Investment Grows - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/","og_locale":"en_US","og_type":"article","og_title":"Economy Watch: Real M-F Fixed Investment Grows","og_description":"While GDP growth in general might seem sluggish, if you look closer, you'll see that real residential fixed investment, such as multi-family structures, grew at 4.1 percent.","og_url":"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2015-02-02T18:01:46+00:00","article_modified_time":"2022-12-06T14:47:49+00:00","author":"Dees Stribling","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/#article","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/"},"author":{"name":"Dees Stribling","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/dc1e9fa4ee0430d86f8e60cd697c953c"},"headline":"Economy Watch: Real M-F Fixed Investment Grows","datePublished":"2015-02-02T18:01:46+00:00","dateModified":"2022-12-06T14:47:49+00:00","mainEntityOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/"},"wordCount":439,"commentCount":0,"articleSection":["News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/","url":"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/","name":"Economy Watch: Real M-F Fixed Investment Grows - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"datePublished":"2015-02-02T18:01:46+00:00","dateModified":"2022-12-06T14:47:49+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/dc1e9fa4ee0430d86f8e60cd697c953c"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/economy-watch-real-m-f-fixed-investment-grows\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Economy Watch: Real M-F Fixed Investment Grows"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/dc1e9fa4ee0430d86f8e60cd697c953c","name":"Dees Stribling","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/42add8af9e9229ed27332ad13f5b8c6f6ae89de868a41cf81baaac4ad46e589a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/42add8af9e9229ed27332ad13f5b8c6f6ae89de868a41cf81baaac4ad46e589a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/42add8af9e9229ed27332ad13f5b8c6f6ae89de868a41cf81baaac4ad46e589a?s=96&d=mm&r=g","caption":"Dees Stribling"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/dcstribling\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004112532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1023"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004112532"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004112532\/revisions"}],"predecessor-version":[{"id":1004617975,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004112532\/revisions\/1004617975"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004112532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004112532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004112532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}