QQQ - 3 Reasons For Weak Investment In The U.S.
2024-07-12 03:50:00 ET
Summary
- US economic growth has been good, but it could have been so much better had businesses not been as cautious on investment.
- Economic and political uncertainty and high borrowing costs appear to be the main reasons for businesses not wanting to put money to work and this will continue to deter capex this year.
- We expect a more favourable environment in 2025.
Originally published on July 9, 2024
By James Knightley & Coco Zhang
The US rebound should have been stronger
The US and eurozone economies have enjoyed contrasting fortunes since their respective governments relaxed Covid containment measures. The US economy has been the top performer in developed markets, with output up nearly 9% on pre-pandemic levels, fuelled by robust consumer spending. The eurozone economy has seen output rise by less than 4% over the same period, with households far more conservative with regard to their willingness to run down savings and use debt to fund spending....
3 Reasons For Weak Investment In The U.S.