WASHINGTON — Non-residential fixed investment decreased 2.5 percent during the third quarter of 2009 compared to a 9.6 percent loss in the previous quarter, according to the U.S. Commerce Department’s Oct. 29 gross domestic product (GDP) report. Contributing to the loss was investment in non-residential structures, down 9 percent in the third quarter.
“This GDP report confirms what many economists have been saying for several months – the recession that began in 2007 is now over,” said Associated Builders and Contractors (ABC) chief economist Anirban Basu. “Perhaps the most welcomed statistic in the GDP data is the rebound in consumer spending, which is key to sustaining the economy’s momentum and ultimately to job creation.
“However, there remains plenty of room for concern. Among the major components of the U.S. economy, the government continues to lead the way in terms of generating economic expansion.
“This decline in business investment is occurring during a period of robust federal spending, which implies that privately generated and privately financed activity remains subdued.”