Companies are reining in their plans for capital investment amid growing anxiety over President Donald Trump’s trade war, according to an industry survey released Monday.
The Business Roundtable found in which nearly two-thirds of chief executives said recent tariffs along with future trade tension would certainly have a negative impact on their capital investment decisions over the next six months. Roughly one-third expected no impact on their business, while only 2 percent forecast a positive effect.
The group’s quarterly survey also showed plans for hiring dropped as well, falling almost 3 points by the previous quarter to 92.6. yet expectations for sales rose 2 points to 132.3.
Those conflicting forces – strong business conditions pitted against fears over trade – were reflected within the group’s broad economic outlook index. in which index declined almost 2 points to 109.3, yet the item remains well above the historical average.
“Business leaders are showing their confidence within the U.S. economy with strong plans for investment along with hiring within the months to come,” BRT Chairman along with J.P. Morgan CEO Jamie Dimon said in a statement. “Pro-growth policies have helped unleash This kind of confidence with an agenda centered on tax reform along with smart regulation. The uncertainty around our trade policies remains a risk.”
Business groups have been among the most vocal critics of Trump’s bellicose stance on trade. The BRT has called the tariffs on Chinese imports “the wrong way to achieve real reforms.” the item will be also calling for a compromise with Canada in which preserves the North American Free Trade Agreement.
“Business Roundtable urges the administration to expand trade along with investment – not introduce brand new barriers along with uncertainties – as the item negotiates with China along with works to deliver a modern, trilateral NAFTA for the American people,” BRT Chief Executive Joshua Bolten said.