Updated figures show that American businesses tightened their purse strings more than previously estimated last quarter while economic growth continued to slow. So reports Reuters.
The decline in U.S. business investment, previously estimated at an annualized 0.6%, was revised downward to 1% in the second quarter of 2019. Corporate profit growth was revised downward to 3.3%, from a previous estimate of 4.8%.
Overall, second-quarter gross domestic product growth was left unchanged at 2.0%. But Reuters notes “financial market fears of a recession.” The Federal Reserve has cut interest rates twice this year, slashing borrowing costs for the first time since 2008.