The Trade War’s Doing A Number On Business Investment!

When questioned before Congress this morning on the impact of the “trade war” with China, Fed Chair Powell confirmed that respondents to the many surveys the Fed performs have major concerns, and that in some cases it is indeed influencing their expansion plans.


This morning’s release of December factory orders confirms Powell’s commentary. Here’s from Econoday’s summary: emphasis mine…

“A glaring weakness in December and November orders are sharp 1.0 percent and 1.1 percent declines for core capital goods orders (nondefense ex-aircraft). This is telling evidence that business investment is down which in turn may well betray a downturn in business confidence. And there’s an important revision in today’s report that will be trimming back estimates for nonresidential investment in tomorrow’s fourth-quarter GDP report as December shipments for this series, initially at a 0.5 percent gain in last week’s advance report, are now revised to no change. November stands at a 0.2 percent decrease for core shipments.”

 As I’ve preached here from the get-go, I can think of virtually nothing more economically pernicious than policy that would disrupt global trade relations. 


I — as I’ve been preaching of late — believe we’re nearing a critical juncture; i.e., it’s critical for the health of the economy and for the markets going forward that a trade agreement be reached relatively soon with China, and that a similar skirmish is not provoked with Europe immediately thereafter…

Share:

Recieve Between the Lines Posts to your Inbox

Sign up for lorem ipsum delores sin.

We care about the protection of your data. Read our Privacy Policy.
vulkan vegas, vulkan casino, vulkan vegas casino, vulkan vegas login, vulkan vegas deutschland, vulkan vegas bonus code, vulkan vegas promo code, vulkan vegas österreich, vulkan vegas erfahrung, vulkan vegas bonus code 50 freispiele, 1win, 1 win, 1win az, 1win giriş, 1win aviator, 1 win az, 1win azerbaycan, 1win yukle, pin up, pinup, pin up casino, pin-up, pinup az, pin-up casino giriş, pin-up casino, pin-up kazino, pin up azerbaycan, pin up az, mostbet, mostbet uz, mostbet skachat, mostbet apk, mostbet uz kirish, mostbet online, mostbet casino, mostbet o'ynash, mostbet uz online, most bet, mostbet, mostbet az, mostbet giriş, mostbet yukle, mostbet indir, mostbet aviator, mostbet casino, mostbet azerbaycan, mostbet yükle, mostbet qeydiyyat