Economics
Another Warning Sign That the U.S. Economy Will Slow Next Year
- Trade war, fading boost from tax cuts haunt economic outlook
- ‘Capex is the No. 1 story,’ according to Bank of America’s Woo
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Juiced by President Donald Trump’s tax cuts, business investment helped deliver a robust U.S. economy in the first half of 2018, but signs have multiplied that the growth driver is faltering.
Companies face tariff-related uncertainty, cooling global demand and rising borrowing costs, while plunging oil prices are menacing the energy sector. Meanwhile, the U.S. and China are settling in for a protracted trade war, the boost from lower taxes is projected to fade next year and a politically divided Congress will probably shirk from additional stimulus.