por admin » Jue Sep 26, 2019 8:21 am
US business investment much weaker in the second quarter than previously estimated
PUBLISHED 49 MINS AGO
REUTERS
U.S. business investment contracted more sharply that previously estimated in the second quarter and corporate profit growth was tepid.
The data cast a shadow on the economy, which is being stalked by financial market fears of a recession.
Gross domestic product increased at an unrevised 2.0% rate in the quarter as the strongest consumer spending in 4-1/2 years offset weak exports and a slower pace of inventory investment.
A worker builds a 2020 Ford Explorer car at Ford's Chicago Assembly Plant in Chicago, June 24, 2019.
Kamil Krzaczynski | Reuters
A worker builds a 2020 Ford Explorer car at Ford's Chicago Assembly Plant in Chicago, June 24, 2019.
U.S. business investment contracted more sharply that previously estimated in the second quarter and corporate profit growth was tepid, casting a shadow on the economy, which is being stalked by financial market fears of a recession.
Business investment declined at a 1.0% annualized rate last quarter, the government said in its third reading of second-quarter GDP on Thursday. That was the steepest decline since the fourth quarter of 2015. Business investment was previously estimated to have declined at a 0.6% pace.
It was pulled down by an 11.1% pace of decline in spending on structures, which reflected drops in the categories of commercial and healthcare, and mining exploration, shafts and well