Dave Brat

This guy did a real good job.

I won't name him so he keeps his job.

But if you take GDP growth at, say, 3%, right, that's what we've been talking about, and you decompose, you just break it up into its part.

What causes the 3%?

Well, consumption is the biggest part of the economy, so that's 2%, right?

So of the 3%, personal consumption is, you know, two-thirds of the economy usually, and it is now.

The remaining part, the big part, non-residential fixed investment.

Non-residential, so non-housing.

So how big is fixed investment?

And where is that?

It's pretty good.

It's pretty good.

But the surprising piece is structures are not up.

Structures are flat up a hair.

So all these data centers you're hearing about, that's not a huge part of the economy.

But the good news is equipment and info processing equipment are up significantly.

So it looks like we'll get some productivity gains.

They'll take place within existing structures.

And those together, those account for, you know, about 1% of that 3% GDP growth.

And so I think it's important for us and the president and other people speaking on the economy to put these AI stories in context so we don't get too carried away.