Fiscal Cliff Kind of a Big Deal
The WSJ reports today that many of America’s biggest corporations are “scaling back investment plans at the fastest pace since the recession,” in part because of concerns about the fiscal cliff.
Corporate executives say they are slowing or delaying big projects to protect profits amid easing demand and rising uncertainty. Uncertainty around the U.S. elections and federal budget policies also appear among the factors driving the investment pullback since midyear. It is unclear whether Washington will avert the so-called fiscal cliff, tax increases and spending cuts scheduled to begin Jan. 2.