US Business Investment Declines

Just one day after the S&P 500 reached a new all-time high, it has turned back around today after it was reported that total business investments have dropped 3% in the third quarter.  Morgan Stanley analysts have pointed to a slow global growth environment and trade war uncertainty as catalysts for this reduction in capital expenditure. The slowdown in global deals was perhaps the most alarming number from the third quarter as the total value of US international business deals fell 32%.

This marks the second consecutive quarter of declining US business investment numbers, further pointing to the trade war as the cause for this slowdown. The report has not taken too much of a hit to the stock market as US GDP growth and October employment growth topped expectations. Consumer spending continues to boom and there are many reasons to be optimistic about the economy going forward, especially as trade war talks appear to be progressing.

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