Many U.S. businesses are pressing pause on their investment plans—a key driver of economic growth—as executives wait to see how President Donald Trump’s tariffs will shake out and whether Congress will enact tax legislation, Bloomberg reports.
Surveys from across the country show that the political climate and its uncertain impacts on business is dragging down expectations for investment.
Business investment makes up around one-seventh of U.S. gross domestic product, or some $4 trillion at today’s levels. Surveys by business groups including the National Association of Manufacturers as well as regional Federal Reserve banks are already showing a decline in investments in recent months after initial gains immediately following Trump’s election.
Just 23% of firms expected higher capital spending this year, down from 51% in October, according to the Philadelphia Fed’s latest Manufacturing Business Outlook Survey.
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