That’s 3 quarters in a row, and that hasn’t happened in nearly 40 years.
Also, the severity of the contraction during the last 2 quarters hasn’t happened for nearly 60 years.
- Real nonresidential fixed investment decreased 37.9% in the first quarter.
- Nonresidential structures decreased 44.2%.
- Equipment and software decreased 33.8%.
- Real residential fixed investment decreased 38%.
The only glimmer of hope? Consumer spending went up 2.2%, when it had decreased by 4.3% in the previous quarter. Still, consumer spending isn’t going to pull us out of this tailspin, but it needs to stay up if we want businesses to start spending and investing again.
More as it develops…