U.S. business investment downturn could pressure slowing economy

  • 📰 Reuters
  • ⏱ Reading Time:
  • 75 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 33%
  • Publisher: 97%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

U.S. business investment contracted more sharply than previously estimated in th...

FILE PHOTO: Lower Manhattan including the financial district is pictured from the Manhattan borough of New York, U.S. June 1, 2016. REUTERS/Carlo AllegriWASHINGTON - U.S. business investment contracted more sharply than previously estimated in the second quarter and corporate profit growth was tepid, casting a shadow on an economy that is being stalked by financial market fears of a recession.

Powell said U.S. central bank contacts had told policymakers that trade policy uncertainty “has discouraged them from investing in their businesses.” The Fed cut interest rates again last Wednesday after lowering borrowing costs in July for the first time since 2008. Business investment was previously estimated to have dropped at a 0.6% pace. It was pulled down by an 11.1% rate of decline in spending on structures, which reflected decreases in the categories of commercial and healthcare, and mining exploration, shafts and wells.

The average of GDP and GDI, also referred to as gross domestic output and considered a better measure of economic activity, rose at a 1.9% rate last quarter, rather than the 2.1% pace estimated last month. That was a slowdown from a 3.2% pace of growth in the first three months of the year.U.S.

Consumer spending is being driven by the lowest unemployment rate in nearly 50 years. A separate report from the Labor Department on Thursday showed initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 213,000 for the week ended Sept. 21. There were minor revisions to trade and inventory investment estimates. Trade cut 0.68 percentage point from GDP growth last quarter and could remain a drag on GDP growth in the third quarter. A third report from the Commerce Department on Thursday showed the goods trade deficit rose 0.5% to $72.8 billion in August amid a rise in imports and small gain in exports.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Where's all that 'winning' gone 45th 🤔 A slowing USEconomy!!! Impeach45

Really, I'm beginning to think that $2 Trillion GOPTaxScam not working.

Maybe they're investing in Republican politicians instead.

'Could' 🙄 11 Democrats liked, so far

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Next recession: Peter Schiff says next one will outdo housing bubble - Business Insider'Bigger than the housing bubble': One market expert breaks down why the next US economic meltdown will be even worse than the last that's why... GOLD - SILVER No Shot Down Reaction on Twice Deal Ecstasy : US-CHINA & BREXIT Deal ' gREAT ' RISK ON Motives... creating non stop by Mainstream Media Prestidigitators & Talking Heads...
Source: BusinessInsider - 🏆 729. / 51 Read more »