US Election Uncertainty Stalls Corporate Investments
Nearly a third of companies delay or scale back investment plans due to concerns over the upcoming presidential election.
- A survey by the Atlanta and Richmond Federal Reserve BanksDuke University found that 30% of CFOs have postponed or reduced investments.
- 21% of respondents specifically cited election-related uncertainty as the reason for delaying investments.
- Companies affected by election uncertainty are less optimistic and are focusing more on cost-reduction investments rather than capacity expansion.
- The survey indicates that these firms do not expect to recover slower growth in 2025, potentially losing 1 to 2 percentage points of growth permanently this year.
- Regulatory, monetary, and corporate tax policies are the top concerns for CFOs in the context of the November 5 election.