- UrbanGrounds - http://urbangrounds.com -
Investment Falls Off a Cliff
Posted By Robbie Cooper On 11/19/2012 @ 8:27 pm In Asides | 2 Comments
America’s makers and producers are going Galt in the wake of Obama’s re-election.
Get used to the new normal, folks. Rampant unemployment, higher taxes, higher prices. This is what you voted for, assholes.
We told you so.
Via The Wall Street Journal :
U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.
Half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.
Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined.
At the same time, exports are slowing or falling to such critical markets as China and the euro zone as the global economy downshifts, creating another drag on firms’ expansion plans.
Corporate executives say they are slowing or delaying big projects to protect profits amid easing demand and rising uncertainty. Uncertainty around the U.S. elections and federal budget policies also appear among the factors driving the investment pullback since midyear. It is unclear whether Washington will avert the so-called fiscal cliff, tax increases and spending cuts scheduled to begin Jan. 2.
Companies fear that failure to resolve the fiscal cliff will tip the economy back into recession by sapping consumer spending, damaging investor confidence and eating into corporate profits. A deal to avert the cliff could include tax-code changes, such as revamping tax breaks or rates, that hurt specific sectors.
Article printed from UrbanGrounds: http://urbangrounds.com
URL to article: http://urbangrounds.com/2012/11/investment-falls-off-a-cliff/
URLs in this post:
 The Wall Street Journal: http://online.wsj.com/article/SB10001424127887324595904578123593211825394.html
 Tweet: http://twitter.com/share?url=http%3A%2F%2Furbangrounds.com%2F2012%2F11%2Finvestment-falls-off-a-cliff%2F&via=robbiecooper&text=Investment%20Falls%20Off%20a%20Cliff&related=&lang=en&count=horizontal&counturl=http%3A%2F%2Furbangrounds.com%2F2012%2F11%2Finvestment-falls-off-a-cliff%2F
Copyright © 2009 UrbanGrounds. All rights reserved.