A growing number of US businesses are holding off on major investments until they know the outcome of the upcoming presidential election, with 30% of firms postponing or altering plans.
Relative to their non-impacted peers, impacted firms are less optimistic, are less likely to invest in expanding or maintaining capacity but more likely to invest in cost reduction.
Firms that expect to reduce investment also are bracing for lower revenue and employment growth this year, indicating a permanent loss of 1 to 2 percentage points of growth.
The voting impact on corporate strategy is increasing, with executives mentioning "election" in earnings calls early and more frequently than in previous cycles.
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