U.S. Growth at Slowest Since 2016

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From the Commerce Department. This morning came our first peek at economic growth for the fourth quarter of last year and with it the early estimate of growth for all of two thousand nineteen September. Through new years. The American economy grew at an annualized rate of two point one percent for the full year two point three percent well below it ought to be I noted what president trump and his advisors have been promising with their policy prescriptions also a slowdown from two thousand eighteen to boot of particular interest to us today. Hey the line item in this report covering business. Investment what companies are spending on equipment and computers and office supplies and the like it has been falling for three straight quarters now. Marketplace's short gets. Its going with what we ought to take from that for nine months now American businesses have been spending less and less money on things they might need need in the future. Everything that you have in your office. Everything is having a production factory that is business investment and that is Torsten Slack chief economist at deutschebank. That's a trade. War came along we began to see business spending begin to slow down and unfortunately there's been an status slowdown for essentially the last eighteen months or so the business investment accounts for about thirteen percent of GDP more than two point eight to really IAN dollars so if businesses are kind of backing away slowly from investing in the future. What does that mean for the future? The Lost Time we saw business investment decline for three quarters or more was heading heading into the two thousand eight two thousand nine recession Nicholas Bloom is professor of economics at Stanford we are not rest assured bloom says about to have another big recession Russian decline in business investment now is tiny compared to what it was back then swearing although not surprising for now. Shrinking business investment means. Our economy is growing more slowly. Which we've known? GDP growth in the fourth quarter of twenty nineteen was two point one percent. It was two point. Nine percent overall back in two thousand eighteen Richard TASERS chief corporate economists with Wells Fargo and company over the long run if we as a society do not invest in upgrading and modernizing and expanding our capital stock with newer and better Sheen ARY instructors equipment. We'll be productive and economists. Say they do not expect a rebound in business investment asmant around the corner in New York. I'm Sabrina short for marketplace. So that's US but as I mentioned above there is the small matter of the rest of the global economy. We we also learned this morning that the Mexican economy actually contracted last year not allot a tenth of a percent for all of two thousand nineteen but it is the worst showing for the Mexican economy in a decade marketplace Mitchell Hartman. Has that one. The economic news on Mexican cable network millennial today wasn't good man. He coke zero percent while a lot of economies. Hit speed bumps twenty nine thousand nine hundred. Mexico hit a roadblock says Council on Foreign Relations Latin America analysts Shannon. O'Neill Mexico has has definitely been affected by the softness and US manufacturing and particularly in the automobile industry in aerospace. That's because parts and finished goods. Go go back and forth across the border again and again before being shipped to their final destination and Monica to bowl at the Peterson Institute. Says this complex supply. I Ching often involves another country China. Mexico appears to have been the hardest hit economy on a micro level by the US S. China trade war. A lot of the supply chains between the US and China run through Mexico as well as Mexico's manufacturing sector construction -struction and consumption have also been week economists Repairman Chalk that up to uncertainty. He says business owners and International. Investors have been spooked. EXPI- Mexico's new president cancelling big infrastructure projects and the borders than volatile. In twenty. That team there was discussion about diverting the resources that are used to clear cargo back and forth in order to deal with the refugee situation. There has been some slowdown in the retail traffic. Both sides of the border other problems. Meanwhile continue to play. The country says Monica to bowl. It's a slow growing economy. And one of the reasons is the drag posed by e security narcotrafficking corruption. Issue you. She says even in the best of times. The Mexican economy hasn't grown more than about two and a half percent. I'm Mitchell Hartman for

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