Low capital expenditures, decelerating corporate growth and a global economy that’s improving at a snails pace are the metrics that are most responsible for anemic growth in the U.S.. This is according to a recent report by Fidelity’s Dirk Hofschire and Lisa Emsbo-Mattingly.
On the upside—the housing market, manufacturing, credit, and improving labour fundamentals.
Here is Fidelity’s scorecard of U.S. economic indicators:
Photo: Fidelity Investments
What this means is that the U.S. is currently in slow expansion mode.
But impending partisan fiscal debates could cause short term volatility write Hofschire and Emsbo-Mattingly. From the report:
“While policy risks continue to populate the headlines, the overall trend during the past 18 months has been the gradual receding of systemic risk. In the U.S., the ongoing fiscal debate is still creating uncertainty—a headwind for business investment—and the potential for rancorous discussions may trigger headline and market volatility over the next three months.”
Hopefully, some of this uncertainty will get cleared out sooner than later.