U.S. | Business Investment – Lower, Higher or just Different?

Summary

Lower net investment in real estate and high depreciation rates of intangibles account for most of the slowdown in net business investment over the last 30 years.

Key points

• Key points:
• Growth of business investment in structures is likely to remain modest due to greater office space efficiency, decline in relative importance of manufacturing, higher energy efficiency, new technologies and slower population growth
• The increase in importance of the services sector and a greater share of intangibles in the economy will keep net business investment growth at more moderate levels than before the 1990s

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