The pullback began as trade tensions escalated last fall, leaving companies unsure about their supply chains, pricing and profits. It has continued amid signs of slowing global growth and increasing consumer concerns about the future. Household names like Harley-Davidson Inc., AT&T Inc. and Target Corp. are joining small businesses in putting the brakes on investment.
“The trade uncertainty has been a major drag on U.S. investment,” Stanford University economist Nicholas Bloom said. Mr. Bloom partners with Steven Davis of the University of Chicago and the Atlanta Fed on a monthly survey of business uncertainty. Trump administration officials have said trade barriers are meant in part to block imports and help revive U.S. manufacturing, while the new but unratified North American trade pact is also intended to encourage manufacturing investment in the U.S. President Trump has said higher tariffs were needed to get China to curtail trade practices that penalize U.S. businesses.
Capital spending for 2019 by Harley-Davidson will fall about 8% from earlier projections, to between $205 million and $225 million, it said in late October. The motorcycle maker is completing planned projects efficiently, resulting in lower spending, a spokesperson said. The biggest pullback among S&P 500 companies came in the industrial sector, where total spending fell $1.8 billion, or 10%; and in financials, where spending fell $951 million, or almost 8%. Spending rose by 4.5%, or $1.2 billion, among communications-services companies.
Thought the big tax cuts would increase investment. Another Trump failure.
Thanks to damn dummy-crats sign the USMCA stop the impeachment BULLSCHIFF now. Work together for the good of the people All of U.S. matter.
If everyone in the country is preparing for a recession, you'll get a recession unless the politburo takes their already insane intervention to trumpian levels
bye bye FossilFuels economy
But I thought the big ass tax break for these big wigs was supposed to be a catalyst for capital spending? I guess not. Another supply side scam.
Why invest and take risk while you can pocket sure money by buying back stock?
gop tax cuts ewarren BernieSanders
So wait...the tax cuts that were supposed to increase capital spending/investment...DIDNT do that?! Shocked!!