Monday, September 30, 2019
US business investment much weaker in the second quarter than previously estimated
In its third reading of the second quarter GDP it was estimated that business investment declined at a 1.0% annualized rate, which is the steepest decline since 2015. This could be as a result of the recent trade war we are in. This can also be added to the number of signs we've seen pointing to a possible recession.
Subscribe to:
Post Comments (Atom)
The trade war with China is definitely a major cause of the decrease in business investment in the second quarter. Since many of the top firms in the U.S. have their products manufactured in China it's causing them to lose a great deal of money because of the high tariffs. And because of this, these major companies who make up a chunk of the GDP have been losing its ability to invest back into their company because of these high tariffs.
ReplyDeleteThis is a major factor to pay attention to going into the end of the year with even more news now surfacing about Trump's impeachment hearings. All of these events lower investor confidence which was forecasted to be the case but is alarming how much impact they have had.
ReplyDelete