Chief executives’ view of the U.S. economy dimmed in recent months, a factor causing business leaders to pull back on plans to invest in their companies.
Wall Street Journal staffer Eric Morath looks at the latest readings from the Business Roundtable survey released Tuesday. The survey showed that 27% expect to decrease capital spending over the next six months—the largest share planning to scale back investment since the middle of 2009, when the economy was just emerging from recession. The gloomy outlook centers mostly on jitters caused by our friends on Capitol Hill in Washington, DC, and the uncertainties around tax policy. Morath writes:
CEOs that are members of the trade group representing the largest U.S. businesses are waiting to see if Congress will renew dozens of tax breaks for businesses, known as “tax extenders.” Firms need clarity on those polices, as well as highway funding and the fate of the Export-Import Bank.