Capital spending by S&P 500 companies grew less than 1% in the third quarter, and would have fallen without Apple and Amazon
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.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Best Neon Makeup Products You Can Actually Pull Off In WinterThe trendiest makeup look of 2019 is bright, neon, and bold. Undoubtedly, trends come and go, but it seems that
Baca lebih lajut »
2 Fall Pies Anyone Can Pull Off, for the Holidays & BeyondFrom a beginner-friendly galette to a show-stopping lattice slab pie. FIJIWater f52partner
Baca lebih lajut »
Firms that analyse climate risks are the latest hot propertyTranslating climate risks into dollar values has become a lucrative business
Baca lebih lajut »
Honduran migrant sent back under new U.S. deal resigned to fate for nowThe first Honduran migrant sent back home under new restrictions pushed by U.S. ...
Baca lebih lajut »
Billionaire investor Carl Icahn is placing a big bet against struggling mall owners, report saysBillionaire investor Carl Icahn is placing a $400 million bet against struggling malls, taking on two of the largest investment firms, according to The Wall Street Journal.
Baca lebih lajut »