Investment intentions fall in both Europe and the US

global productive investment growth

J.P. Morgan | It seemed that the trade tensions between the US and China were relaxing, but a breakdown in the negotiations has caused concerns to re-emerge in recent weeks.

The trade tensions and the tariffs imposed already have caused a slowdown in global trade and damaged business confidence. The blow to confidence has been shown in the fall in investment intentions in both the US and Europe.
Capital spending intentions in Europe have fallen sharply since 2018 and the risk of possible tariffs in the car sector remains a cause for concern in the region.

In the US, investment intentions seemed to be recovering when the chances of a trade agreement were high. However, the increase of tensions on this front means that companies are facing more uncertainty and the capex could again be the victim.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.