The latest monthly data suggest that business investment contracted slightly in the third quarter, probably because of a growing caution with the fiscal cliff looming closer and the euro-zone crisis rumbling on. We don't anticipate that this is the start of a protracted decline. Nevertheless, with corporate profits at a relatively high level and most firms able to access cheap credit now, business investment should really be leading the recovery, not lagging towards the back of the pack.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.