Future business spending points to downturn

Rick Moran
The Wall Street Journal doesn't sugarcoat it: 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. 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...(Read Full Post)

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