GDP, structures investment grow; construction prices, compensation costs rise

Real (net of inflation) gross domestic product increased 2.0 percentin the third quarter of 2010 at a seasonally adjusted annual rate, up from 1.7 percentin the second quarter, according to the advance estimate today by the Bureau of Economic Analysis. Real investment in private nonresidential structures rose 3.9 percentafter falling for eight straight quarters. Real residential investment slumped 29 percent, after rising 26 percentin the second quarter, reflecting the end of the home buyer tax credit in April. Real government investment in structures rose 8.8 percent, following a 9.0 percentsecond-quarter gain, boosted by federal spending on stimulus projects, military base realignment and Gulf Coast hurricane recovery and preparation. The price indexes for the three types of investment rose at seasonally adjusted annual rates of 2.6 percentfor private nonresidential, -0.5 percentfor residential, and 1.9 percentfor government structures, according to an Oct. 29 Data DIGest report.

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