News of US business investment contracting more sharply than previously estimated in the second quarter and tepid corporate profit growth has cast a shadow on an economy stalked by market fears of a recession.
The downturn in business spending has been blamed on the Trump administration’s near-15-month trade war with China.
The soft investment and sluggish profit gains, reported by the US Commerce Department, could raise doubts on consumers’ ability to continue driving the economy.
Meanwhile, British consumer sentiment has fallen to a six-year low due to increased worries about job security and the impact that trade tensions and political uncertainty will have on individuals’ finances, a survey showed.
Britain’s economy unexpectedly contracted in the three months to June and the Bank of England and other economists predict only modest growth in the three months to September, with Britain still at risk of a disruptive Brexit next month.